Hanjin Group "Korean Air Executives and Employees Dispatched to Hanjin KAL, Lawful Transfer"

"Alleged Violations of the Fair Trade Act and Dispatch Act" KCGI's Claims Refuted

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Je-hoon] Hanjin Group on the 21st refuted the claim by private equity fund (PEF) KCGI that Korean Air illegally dispatched employees to its holding company Hanjin Kal and provided unfair support, stating that "the employee dispatch is a lawful transfer corresponding to personnel exchange within the group."

Hanjin Group released a press statement in the afternoon, saying, "The claim by KCGI that Korean Air illegally dispatched employees and provided unfair support to Hanjin Kal is not true."

Earlier, KCGI stated regarding media reports that Korean Air dispatched some executives and employees to Hanjin Kal to assist with shareholder meeting-related tasks, "If true, this constitutes unfair support under the Fair Trade Act and likely violates the Dispatch Act," adding, "It is deplorable that CEO Cho Won-tae is engaging in such archaic behavior to maintain his position as the head of the group."

In response, Hanjin Group said the personnel dispatch was lawful and that "all costs incurred during the dispatch, including labor costs, are settled through fair contracts and proper procedures."

Hanjin Group also emphasized, "Such transfers and personnel exchanges within group companies are conducted to foster understanding of various businesses within the group and to develop human resources," adding, "This is a lawful practice commonly implemented by other companies as well."

Meanwhile, according to industry sources, Hanjin Kal, the holding company of Hanjin Group, had only 32 employees as of the third quarter of last year. It is known that Hanjin Group dispatches personnel to support the practical work of Hanjin Kal.