KCGI "Electronic Voting Should Be Introduced Considering the Spread of COVID-19"

Acquisition of Delta Air Lines' Stake Raises Doubts About True Intentions

[Asia Economy Reporter Minji Lee] KCGI, a private equity fund currently in conflict with Chairman Cho Won-tae of Hanjin Group over the management rights of Hanjin KAL, has urged Hanjin Group to introduce an electronic voting system considering the spread of the novel coronavirus infection (COVID-19). It also criticized Delta Air Lines' acquisition of Hanjin KAL shares, expressing suspicion about its true intentions.

[Image source=Yonhap News]

On the 25th, KCGI released a press statement titled ‘KCGI’s Position on the Introduction of Electronic Voting and Delta Air Lines’ Share Acquisition,’ stating, “We urge the full implementation of the electronic voting system in consideration of the spread of the COVID-19 virus.”

KCGI explained that it requested the introduction of electronic voting to the boards of directors of Hanjin KAL and Hanjin on the 5th, but the Hanjin Group has yet to respond. KCGI pointed out, “Major listed companies are increasing the rate of electronic voting ahead of the March regular shareholders’ meetings to strengthen shareholder rights. Forcing shareholders to attend the shareholders’ meeting in person under the current circumstances threatens not only their rights but also their health and safety.”

Regarding Delta Air Lines’ acquisition of shares, KCGI raised its voice, saying, “They are leaking national wealth to foreign competing airlines to maintain management rights,” and “We have doubts about the true intention behind the share acquisition.”

Furthermore, KCGI stated, “If the share acquisition was to enhance synergy from the joint venture (JV) between Korean Air and Delta Air Lines, it should have been made against Korean Air, which urgently needs financial structure improvement,” adding, “If Korean Air is placed at a disadvantage during JV profit negotiations to secure a white knight stake for the foreign airline, this would constitute a serious breach of fiduciary duty by the Hanjin Group management.”

Additionally, KCGI insisted that Chairman Cho actively communicate with shareholders. KCGI criticized, “We proposed a public debate with Cho Won-tae and CEO Seok Tae-soo of Hanjin KAL on the 17th, but received no response by the deadline on the 20th,” and “The management is hastily blaming the shareholder coalition by distributing one-sided statements without presenting specific opinions on the pressing issues.”

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