Hanjin Management Control Dispute Effectively Ends... KCGI Terminates Joint Holding Agreement

Jowon Tae, Chairman of Hanjin Group

[Asia Economy Reporter Dongwoo Lee] The three-party coalition (former Korean Air Vice President Cho Hyun-ah, KCGI, and Bando Construction), which had been engaged in a management rights dispute against Cho Won-tae, Chairman of Hanjin Group, has effectively ended the conflict as it moves toward dissolution.

On the 2nd, KCGI announced, "The joint holding agreement among the shareholder coalition has been terminated by mutual agreement." The shareholding ratios of each party in Hanjin KAL are KCGI 18.52%, former Korean Air Vice President Cho Hyun-ah 5.71%, and Bando Construction 18.19%.

KCGI stated, "We will support the management's correct decisions aimed at improving Hanjin Group's governance structure and corporate value, and at the same time, as shareholders, we will continuously monitor and check areas that require improvement."

Previously, since 2018, KCGI had demanded improvements in Hanjin Group's financial structure and corporate governance, and in January last year, it formed a 'shareholder coalition' by gathering shareholders who shared the vision for Hanjin Group.

Industry insiders analyzed that the termination of the joint holding agreement was due to the diminishing role of the three-party coalition as Korean Air's acquisition of Asiana Airlines progressed, removing the justification for confrontation over management rights.

In particular, it is evaluated that the coalition lost momentum after losing the injunction lawsuit to prohibit new share issuance, which was conducted last year to block the Korea Development Bank's participation in Hanjin KAL's paid-in capital increase.

KCGI said, "Going forward, we will engage in open dialogue and cooperation with various shareholders to improve Hanjin Group's corporate governance and enhance corporate value, and will not hesitate to hold management accountable whenever necessary."

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