Sangjik Lee Donates Entire Stake in Eastar Jet... "Fulfill the Promise of Jeju Air M&A" (Update)

[Image source=Yonhap News]

[Asia Economy Reporters Kim Hyewon and Yoo Jehoon] Lee Sang-jik, a member of the Democratic Party of Korea and the founder of Eastar Jet, announced on the 29th that his family would donate all shares of Eastar Jet owned through Eastar Holdings to the company.

At a press conference held at Eastar Jet's headquarters in Gangseo-gu, Seoul, Lee conveyed this message through a statement read by Kim Yusang, Executive Director of Eastar Jet's Management Headquarters, saying, "As the founder, I am deeply sorry for the issue of unpaid employee wages."

Lee stated, "The process and procedures for Eastar Holdings' acquisition of Eastar Jet shares were lawful, and the related taxes were properly paid, but if there were any shortcomings in meeting the public's expectations, I sincerely apologize."

He added, "Due to the COVID-19 pandemic, the entire aviation industry is in a precarious situation, and Eastar Jet and its members are in a desperate position to survive. I will do my best to help Eastar Jet return to normalcy quickly by putting everything aside and with the founder's original intention and affection."

Choi Jong-gu, CEO of Eastar Jet, urged Jeju Air to promptly proceed with the merger and acquisition (M&A) process. Choi said, "Together with 1,600 employees, we urge Jeju Air to sincerely expedite the acquisition process as originally promised," and pointed out, "While Eastar Jet bears primary responsibility for the current difficulties, Jeju Air is not free from responsibility either."

Choi continued, "Due to the ongoing M&A with Jeju Air, Eastar Jet is losing time without eligibility for government support," and warned, "If the worst-case scenario materializes for Eastar Jet, Jeju Air will not be able to avoid responsibility."

He further urged, "As a subsidiary of a large corporation and the leading low-cost carrier (LCC), we call for a responsible decision," and added, "We earnestly request a clear statement regarding the acquisition in the near future."

Eastar Jet also appealed boldly to the government for support. Choi said, "The LCC industry, which has contributed to reducing the public's airfare burden and popularizing air travel, is currently facing a dire crisis," and urged, "Before the aviation industry ecosystem, which we have built with blood and sweat, collapses, the government should take bold and proactive investment measures."

To employees, he said, "All members must unite as one," and urged, "In this life-or-death crisis, there is no division between workers and employers. Let us all unite and work together with one heart to overcome this crisis."

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