Hanjin Group: "The Three-Party Alliance Is Speculative Capital Seeking Short-Term Gains... Will Harm Shareholders Through Eat-and-Run"
On the 6th, the day the Korean Air board meeting was held, a silence prevailed at the Korean Air Seosomun building in Seoul. Photo by Mun Ho-nam munonam@
[Asia Economy Reporter Yoo Je-hoon] On the 20th, Hanjin Group dismissed the anti-Jo Won-tae three-party alliance's press conference, which labeled the company's management status as a "total management failure," as nothing more than baseless criticism lacking vision and substance from speculative forces.
In a press release issued that afternoon, Hanjin Group stated, "The three-party alliance is a speculative force seeking short-term gains and will ultimately 'eat and run,' causing harm to shareholders."
Regarding the press briefing held that day, Hanjin Group criticized, "They failed to present a clear vision or detailed management strategy," adding, "They misled the current management situation with forced interpretations and conducted a nonsensical briefing filled with harsh, unfounded criticism of the top management."
Furthermore, Hanjin Group addressed KCGI representative Kang Sung-bu's declaration that former Vice Chairwoman Cho Hyun-ah would not return to frontline management, stating, "If the three-party alliance takes control of the board and appoints a CEO, the CEO could then appoint parties involved in the alliance or those with direct or indirect interests as non-registered executives," calling it "an act of deceiving the market and shareholders."
Hanjin Group also pointed out the three-party alliance's proposal to add a 'director qualification clause' to the articles of incorporation to block former Vice Chairwoman Cho's return to management as a trick. Previously, the alliance proposed adding clauses such as ▲ cases where a prison sentence or higher has been confirmed for breach of trust or embezzlement related to the company or affiliates and less than three years have passed since, and ▲ cases with legal disqualifications.
Regarding this, Hanjin Group emphasized, "Former Vice Chairwoman Cho, who was responsible for the 'nut rage' incident, has been convicted under the Aviation Security Act, Customs Act, and Immigration Control Act, is currently indicted on child abuse charges, and is undergoing divorce proceedings," adding, "Limiting qualifications only to breach of trust and embezzlement is a trick to facilitate her return."
Hanjin Group also responded to the three-party alliance's criticism of Korean Air's high debt ratio and hybrid capital securities (perpetual bonds), stating, "The recent increase in the debt ratio is due to changes in lease accounting standards and exchange rate rises; excluding exchange rate effects, net borrowings have decreased by several hundred billion won," and "Perpetual bonds are currently recognized as capital and are used by other companies and financial institutions, so denying their issuance is unreasonable."
Hanjin Group concluded, "Threats to management rights from private equity funds seeking only arbitrage gains do not contribute to Hanjin Group's mid- to long-term development," adding, "If the three-party alliance 'eats and runs' after making gains, the victims will ultimately be the company, its members, individual investors, and minority shareholders."
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