KCGI: "The Alliance of Cho Hyun-ah and Bando Construction Is for a Professional Management System"

"Distorting the Perspective by Labeling It as a Family Dispute"

On the 6th, when the Korean Air board meeting was held, a sense of silence prevailed at the Korean Air Seosomun building in Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Minji Lee] Activist private equity firm KCGI claimed that its alliance with former Korean Air Vice President Cho Hyun-ah and Bando Construction is a decision to introduce a professional management system to the Hanjin Group. Furthermore, it dismissed the notion that this is merely a family dispute within the controlling family as a distorted perspective.

On the 6th, KCGI stated in its 'Position on the Joint Holding Agreement' that "The joint holding agreement for Hanjin KAL shares is intended to change the existing management system to a professional management system," adding, "It is the first step toward improving the governance structure that treats the Hanjin Group, which lacks vision and capability, as a private asset."

KCGI continued, "It is regrettable that some distort this as a simple family dispute," and added, "Once a responsible management and compliance system led by competent professional managers is established, employee job satisfaction and self-esteem will increase in a stable management environment, and better services will be provided to customers."

KCGI also said, "This joint holding declaration was made based on a consensus that innovation in management methods is necessary as the existing management, led by Hanjin KAL CEO Cho Won-tae, fails to properly recognize the management crisis of the Hanjin Group and has not presented clear countermeasures," criticizing, "Although the management proposed the 'Hanjin Group Mid-to-Long-Term Vision and Hanjin KAL Management Development Plan' last year in response to demands for management innovation, no subsequent will or effort for management improvement has been observed."

Furthermore, "After this joint holding agreement, the Hanjin Group management has belatedly announced plans to propose new management improvement measures and discuss them with shareholders, but it is difficult to attribute sincerity or credibility to plans put forth by management that still views shareholders not as the true owners of the company but as cumbersome external forces," it said.

KCGI holds a 17.29% stake in Hanjin KAL, the holding company of the Hanjin Group, making it the largest single shareholder. Recently, it signed a joint stock holding agreement with former Vice President Cho and Bando Construction affiliates, establishing an opposition front against the Cho Won-tae Hanjin chairman system. Considering the effective voting shares, the combined shareholding ratio of KCGI, former Vice President Cho, and Bando Construction affiliates reaches 31.98%.

This content was produced with the assistance of AI translation services.