KCGI: "Dispatch of Korean Air Hanjin Kal Employees May Violate Law... Immediate Suspension Required"

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] Private equity firm (PEF) KCGI demanded on the 21st that Korean Air immediately stop illegal activities, stating that recent media reports claiming Korean Air dispatched some employees to Hanjin KAL to support shareholder meeting operations, if true, constitute unfair support under the Fair Trade Act and likely violate the Dispatch Act.

KCGI issued a statement that day saying, "We will not overlook the allegations of unfair support and illegal dispatch by Korean Air," expressing their position.

According to industry sources, Korean Air recently dispatched some employees, including one executive-level personnel, to Hanjin KAL to assist with shareholder meeting operations. Hanjin KAL is the holding company of the Hanjin Group, with a workforce of about 30 employees.

Regarding this, KCGI pointed out, "At the upcoming Hanjin KAL shareholder meeting, the reappointment of CEO Cho Won-tae is scheduled to be on the agenda," and added, "We cannot help but express our dismay at the archaic behavior of CEO Cho mobilizing employees of Korean Air, a key company of the Hanjin Group, to secure his position as the group head."

KCGI continued, "Korean Air employees are bearing the burden of poor performance caused by the management's reckless operation and excessive debt ratio," and argued, "In this situation, CEO Cho dispatching Korean Air employees to Hanjin KAL for his reappointment shows he is more concerned with preserving his status than the group's development, and this must be corrected promptly."

KCGI also stated, "CEO Cho has previously been investigated by the Fair Trade Commission and prosecutors for unfairly using Korean Air to support companies he personally invested in, and related cases are currently pending at the Supreme Court," adding, "Without any reflection on past wrongdoings, CEO Cho's wrongful act of mobilizing employees of Korean Air, the national airline, as if they were his personal servants must be eradicated."