Asiana Files Lawsuit to Forfeit Deposit Against HDC Hyundai Development

Legal Battle Begins... HDC Hyundai Development Company Also Says "Do Not Sell Asiana Assets Without Consent"

Asiana Airlines, expected to renegotiate the acquisition with HDC Hyundai Development Company, held an extraordinary general meeting of shareholders on the morning of the 15th at its headquarters in Osoe-dong, Gangseo-gu, Seoul, where it resolved to increase the total number of shares to be issued and the limit of convertible bonds for capital expansion. After the shareholders entered, employees were removing the guide signs. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Yu Je-hoon] Asiana Airlines has filed a lawsuit against HDC Hyundai Development Company to forfeit the deposit.

According to industry sources on the 10th, Asiana Airlines filed a lawsuit in court on the 5th against HDC Hyundai Development Company to forfeit the deposit. Previously, HDC Hyundai Development Company paid Asiana Airlines a new share deposit of 217.7 billion KRW, and since a pledge (collateral) was established on it, they are requesting to cancel it.

The legal battle over the deposit had been anticipated earlier. HDC Hyundai Development Company, creditors, and Kumho Industrial have been engaged in a dispute over responsibility regarding the failed merger and acquisition (M&A).

HDC Hyundai Development Company demanded a re-inspection from the creditors and Kumho Industrial, stating that the overall circumstances related to the acquisition changed after the COVID-19 pandemic. Subsequently, both sides continued their disputes, and Asiana Airlines terminated the contract, claiming that HDC Hyundai Development Company had no intention to acquire.

HDC Hyundai Development Company is also responding. According to financial sources, HDC Hyundai Development Company reportedly sent an official letter to Kumho Industrial, the major shareholder of Asiana Airlines, stating that subsidiaries such as Kumho Resort should not be sold without consent. The industry views this not as a genuine intention to acquire but as a move to clarify responsibility for contract termination in potential future legal battles.

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