'Mr. Bitter Words' Dong-gul Lee, Chairman of KDB, Makes Three Resolute Statements

Ssangyong Motor Labor and Management Final Ultimatum: "Additional Support Only If Two Conditions Met... Last Chance"
Criticism of National Pension Opposition to Korean Air-Asiana Merger
FSS KIKO Compensation Judgment: "Populist... Compensation Impossible"

[Asia Economy Reporter Kangwook Cho] "This is the last chance. If it fails again, that's the end."

‘Mr. Bitter Truth’ Lee Dong-geol, Chairman of KDB Industrial Bank, sent a stern final ultimatum to the Ssangyong Motor labor and management, who have filed for corporate rehabilitation procedures. Known for his blunt remarks not only to the business community but also to labor unions and political circles, Chairman Lee raised his critical voice not only against Ssangyong Motor but also against the National Pension Service and the Financial Supervisory Service. In particular, he directly opposed and confronted Yoon Seok-heon, Governor of the Financial Supervisory Service, calling the KIKO (Knock-In Knock-Out) foreign exchange derivative product compensation issue?a matter to which Yoon has devoted the most effort since his inauguration?a populist judgment.

Demand for Documentation of Collective Agreement Extension from 1 Year to 3 Years and Complete Suspension of Disputes Until Profitability at Ssangyong Motor

At the New Year press conference held online on the 12th, he reiterated that the ongoing negotiations for new investment between the current major shareholder, Mahindra Group, and potential investors represent the ‘last chance.’

Regarding additional support from the bank, he set two preconditions. One is to extend the collective agreement contract period from one year to three years, and the other is to document a commitment to suspend all dispute actions until the company returns to profitability.

Chairman Lee said, "I have seen many cases where restructuring companies harm themselves by striking every year and causing production disruptions before normalization," emphasizing, "There must be absolutely no self-harm caused by discord between Ssangyong Motor’s labor and management." He warned, "If these two preconditions are not met, I will not provide even one won of support." However, he added, "This is not a one-sided oppression of the labor union but a last-ditch request to save Ssangyong Motor."

Korean Air-Asiana Integration to Enhance Shareholder Value... "National Pension Service’s Justification for Exercising Shareholder Rights Fades"

Chairman Lee also criticized the National Pension Service for expressing opposition regarding the integration of Korean Air and Asiana Airlines. He assessed that the justification for the National Pension Service’s exercise of shareholder rights has faded.

He pointed out, "It is hard not to be suspicious of the opposition when the integration is expected to increase the National Pension Service’s equity value," and said, "The National Pension Service’s claim that this merger could be disadvantageous to Korean Air lacks grounds." He continued, "There have been criticisms about whether the National Pension Service’s decision to exercise shareholder rights was made rationally," and explained, "I do not believe the bank’s justification has faded or the importance of the matter has diminished."

"Is the Financial Supervisory Service Above the Law?"... Criticism of KIKO Compensation as "Populist Judgment"

He also delivered sharp criticism regarding the KIKO compensation issue. Chairman Lee stated, "I believe there is no need or reason to compensate, and compensation should not be made."

He cited three reasons for refusing compensation: ▲lack of legal understanding of the judgment ▲the matter being legally concluded ▲doubts about the affected companies.

Chairman Lee said he could not understand the Financial Supervisory Service’s judgment. He said, "It is difficult to accept the claim of mis-selling legally," and added, "The Financial Supervisory Service’s assertion of mis-selling is more of a populist judgment than a logical one, so compensation is impossible."

He also pointed out, "Overturning a court decision in a legally concluded case could remain a very bad precedent in South Korea’s financial history," calling it "undesirable."

Furthermore, Chairman Lee said, "Until the court itself reverses the decision, it is right to follow the original ruling," and sharply stated, "Is the Financial Supervisory Service above the law? The idea that ‘only the line I enforce is right’ is a very dangerous thought."

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