Hanjin Kal Shareholders' Meeting D-5... Intense Final Public Opinion Battle Between Both Sides

[Asia Economy Reporter Yu Je-hoon] With the Hanjin KAL regular shareholders' meeting just five days away, a fierce final public opinion battle is unfolding between Chairman Cho Won-tae, who is vying for control of Hanjin Group, and the shareholder coalition (the 3-party alliance) aiming to restore the group. Both sides are simultaneously securing shares, showing a strong focus on gaining momentum for a long-term battle.

According to the aviation industry on the 22nd, Hanjin KAL will hold its regular shareholders' meeting on the morning of the 27th at the Hanjin Building in Sogong-dong, Jung-gu, Seoul. Hanjin KAL is the holding company of the group and is at the center of this management rights dispute.

The biggest point of interest in this shareholders' meeting is the proposal for the appointment of inside and outside directors. Currently, the Hanjin Group side has proposed a total of seven directors, including two inside directors (one being Chairman Cho, whose term expires this year and who is seeking reappointment) and five outside directors. The 3-party alliance has proposed seven directors as well, with three inside directors and four outside directors.

The current shareholding gap between the two sides is not large. Chairman Cho holds a total of 33.45% of shares, including his own (6.52%), Lee Myung-hee, advisor of Jungseok Enterprise (5.31%), Cho Hyun-min, Executive Director of Hanjin KAL (6.47%), and allies such as Delta Air Lines (10.00%). Additionally, if shares held by potential allies like Kakao and GS Caltex are combined, the friendly shares could rise to around 37-38%.

The 3-party alliance holds a combined 31.98% of shares based on voting rights, including KCGI (17.29%), Bando Construction (8.20%), and Cho Hyun-ah, former Vice President of Korean Air (6.49%).

Since the shareholding gap is not significant, both sides are engaging in an intense final public opinion battle. This is a move aimed at institutional and small investors who hold casting votes, such as the National Pension Service (2.9%). In fact, the 3-party alliance is launching a barrage of attacks against Hanjin, including allegations of Airbus rebate suspicions and providing gift certificates when soliciting proxy votes. Meanwhile, Hanjin Group has requested an investigation by the Financial Services Commission, accusing the 3-party alliance of violating the Capital Markets Act.

The debate is also fierce over the recommendations of proxy advisory firms, which play a pivotal role in institutional investors' voting decisions. When ISS, the world's largest proxy advisory firm, and Korea Corporate Governance Service (KCGS), a leading domestic advisory firm, supported Chairman Cho's reappointment, the 3-party alliance criticized it as a "biased decision," while Hanjin also questioned the neutrality of Sustainvest.

However, the business community assesses that the possibility of a "one-shot victory" at this shareholders' meeting is low, as both sides are steadily increasing their shareholdings. The 3-party alliance recently expanded its shareholding to 40.12%. Hanjin's side is also steadily increasing its shares, with Delta Air Lines' stake rising from 10% to 14.90%.

An industry insider said, "Looking at past major corporate management disputes and succession battles, it is rare for the situation to be resolved in a single shareholders' meeting," adding, "In the long term, the key will be how far both sides can sustain their financial battles."

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