Hanjin-KCGI, Daily Tensions "Preserving Key Industries and Jobs" VS "Don't Threaten"

Conclusion by next week at the latest... First hurdle in Korean Air-Asiana acquisition

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Je-hoon] As the court's decision on the injunction to prohibit Hanjin KAL's third-party allotment capital increase is imminent, the tension between Hanjin Group and the private equity fund (PEF) KCGI is intensifying. While Hanjin Group is engaging in public opinion formation by stating, "We will protect the national key industry and jobs," KCGI is actively highlighting opposition by saying, "Do not threaten by holding the key industry and jobs hostage."

On the 27th, Hanjin Group released a statement saying, "We will not be shaken by the interference of speculative and slanderous forces and will focus solely on what kind of ecosystem the national key industry, the aviation industry, can establish to survive," adding, "We will faithfully carry out the integration process to protect about 100,000 jobs."

Hanjin Group also criticized KCGI, which is raising issues about KDB Industrial Bank's participation in Hanjin KAL's third-party allotment capital increase, saying, "KCGI CEO Kang Sung-bu recently claimed he could come up with more than 100 alternatives for restructuring the aviation industry, but the alternatives presented so far are legally incorrect and unrealistic," and added, "He is admitting to being an amateur who does not understand the law."

KCGI is also escalating its offensive. In a statement released the day before, KCGI countered against KDB and Hanjin, who are engaging in a public opinion battle, saying, "You must not threaten the judiciary and the public by holding the national key industry and jobs hostage," and "It is right to wait humbly and seriously for the judiciary's judgment."

Furthermore, KCGI stated, "Hanjin Group's management, aviation industry restructuring, and Asiana Airlines' rescue are separate issues," and added, "The state-run bank is forcing the acquisition of Asiana Airlines under unreasonable conditions, mobilizing taxpayers' money, and investing in shares of Hanjin KAL, which is in a management rights dispute, thereby infringing on the rights of existing shareholders. Now, it is threatening the judiciary and creating anxiety among the public. This is unacceptable."

Meanwhile, the court's conclusion on the injunction application to prohibit Hanjin KAL's new share issuance filed by KCGI is expected to be announced by early next week at the latest. If the injunction is granted, Korean Air's acquisition of Asiana Airlines is likely to be canceled, whereas if it is dismissed, the acquisition is expected to proceed smoothly.

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