Three-Party Alliance Files Lawsuit to Cancel March Hanjin Kal Shareholders' Meeting Resolution

by Yoo Jaehoon

Published 28 May.2020 18:19(KST)

On the 27th, shareholders and executives are moving inside the building at the 'Hanjin KAL 7th Regular Shareholders' Meeting' held at the Hanjin Building Main Office in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Yoo Je-hoon] The shareholder coalition for the normalization of Hanjin Group, known as the "3-Party Alliance," which opposes Cho Won-tae, filed a lawsuit in March to annul the resolution of the Hanjin KAL regular shareholders' meeting. This marks a resurgence of the management dispute within Hanjin Group.

According to industry sources on the 28th, the 3-Party Alliance filed a lawsuit on the 26th at the Seoul Central District Court to annul the resolution of the Hanjin KAL shareholders' meeting. Previously, before the March shareholders' meeting, the 3-Party Alliance filed two injunction requests: one to prohibit the exercise of voting rights by the Korean Air Labor Union (3.7%), considered an ally of Cho Won-tae, Chairman of Hanjin Group, and another to allow the exercise of voting rights for shares held by Bando Construction. However, both injunction requests were dismissed.

Having lost the two injunction lawsuits, the 3-Party Alliance suffered a complete defeat at the shareholders' meeting at the end of March. Despite the loss, they announced that "although the outcome was different from expected, we intend to continue contesting the unfair aspects through main lawsuits," signaling a second round of legal battles.

A representative of the 3-Party Alliance stated, "We had already declared our intention to examine the issues through main lawsuits immediately after the shareholders' meeting," adding, "Since a lawsuit to annul the resolution must be filed within two months after the shareholders' meeting, we initiated the lawsuit on the 26th as the deadline approached."