Jowon Tae "Ready to Expand Activities in the US"... Requests US Approval for Asiana M&A (Comprehensive)

Attended AmCham Forum on 21st and Spoke
"Korean Air Employs 75,000 in the U.S."
"Asiana M&A Contributes to U.S. Economy"

Chairman Cho Won-tae of Hanjin Group (right) speaking at the "Korea Business Seminar Forum 2022" hosted by the American Chamber of Commerce in Korea (AMCHAM) at the Conrad Hotel in Yeouido, Yeongdeungpo-gu, Seoul, at 9 a.m. on the 21st. Photo by Moon Chae-seok

[Asia Economy Reporter Moon Chaeseok] Cho Won-tae, Chairman of Hanjin Group, indirectly requested approval from U.S. competition authorities regarding the merger and acquisition (M&A) of Korean Air and Asiana Airlines, stating, "Korean Air is ready to increase its (economic) activities within the United States."

On the morning of the 21st at 9 a.m., Cho spoke as a speaker at the "Korea Business Seminar Forum 2022" hosted by the American Chamber of Commerce in Korea (AMCHAM) at the Conrad Hotel in Yeouido, Yeongdeungpo-gu, Seoul.

Addressing U.S. competition authorities, Cho emphasized, "Although Asiana has experienced significant financial difficulties, if Korean Air acquires it, it can prevent losses that may occur if Asiana's operations are suspended, thereby avoiding economic losses for both Korea and the U.S." He added, "We have already received approval from Korea's Fair Trade Commission and are proceeding with the acquisition while awaiting approval from U.S. authorities," and stressed, "Korean Air operates various businesses worldwide and is prepared to expand its activities within the U.S." According to Chairman Cho, Korean Air has created more than 75,000 direct and indirect jobs in the U.S. It has generated approximately $18 billion (about 22 trillion KRW) through tourism, business, transportation, and hotel operations within the U.S., also contributing to increased indirect consumption domestically.

Currently, Korean Air has obtained merger approval with Asiana from Korea's Fair Trade Commission as well as from Turkey, Taiwan, Vietnam, and Singapore, but is awaiting reviews from the U.S., European Union (EU), Japan, China, the United Kingdom, and Australia. Previously, Chairman Cho mentioned in an interview with major foreign media that "the merger is both an opportunity and a step toward long-term survival." According to major foreign media, after the merger, the combined international passenger and cargo volume would make the airline the 10th largest in the world, with the air cargo market share ranking 4th. Korean Air recorded an operating profit of 1.4644 trillion KRW last year, six times higher than the previous year.

Chairman Cho Won-tae of Hanjin Group (right) and Foreign Minister nominee Park Jin (center) are seen conversing at a VIP meeting just before the 'Korea Business Seminar Forum 2022' event hosted by the American Chamber of Commerce in Korea (AMCHAM) on the 21st at the Conrad Hotel in Yeouido, Yeongdeungpo-gu, Seoul. (Photo by Moon Chae-seok)

Meanwhile, Park Jin, the nominee for Minister of Foreign Affairs, who attended the event, said regarding the transfer of the main department for trade negotiations from the Ministry of Trade, Industry and Energy to the Ministry of Foreign Affairs, "I have nothing to say separately," adding, "It is difficult to comment on this today (as this is the AMCHAM event venue)."

When asked if there are any specific industries such as secondary batteries or shipbuilding that the next government is particularly focusing on amid its emphasis on economic security, he replied, "It is difficult to say such things today," declining to answer.

It was reported that Park was originally scheduled to participate as a presenter at the event but attended only without giving a presentation at the request of the Ministry of Foreign Affairs.

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