KCGI Proposes Meeting to "Clear Up Misunderstandings"... Hanjin Union Rejects, Saying "Don't Deceive"

Kang Sung-boo, CEO of KCGI (center), is answering questions at a press conference held on the 20th at the Glad Hotel Yeouido in Yeongdeungpo-gu, Seoul, for the shareholder coalition aimed at normalizing the Hanjin Group. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Koh Hyung-kwang] Activist private equity firm KCGI proposed a meeting to the Hanjin Group labor union to "clear up misunderstandings," but the Hanjin union rejected the offer, saying there was "no sincerity."

According to industry sources on the 28th, KCGI sent an official letter the day before proposing a meeting to the unions of affiliates such as Korean Air, Hanjin, Korea Airport Corporation, and Jin Air.

In the letter, KCGI explained, "If the meeting is arranged, KCGI's CEO Kang Sung-bu and Vice CEO Shin Min-seok will attend to listen to the questions and opinions of union members and discuss the future development direction of Hanjin Group," adding, "This is a proposal to dispel misunderstandings through frank dialogue."

This was in response to the joint statement previously issued by the unions of Korean Air, Hanjin, and Korea Airport Corporation, which criticized the three-party alliance of KCGI, former Korean Air Vice President Cho Hyun-ah, and Bando Construction, who are in conflict with Hanjin Group Chairman Cho Won-tae.

KCGI claimed, "The Hanjin Group unions argue that KCGI, as a private equity fund, focuses only on returns and intends to split Hanjin Group, showing indifference to workers' welfare and well-being, but this stems from a misunderstanding."

They added, "Since proposing 'Hanjin returning to the people' in January last year, KCGI has opposed any workforce restructuring and suggested ways to improve member satisfaction," further stating, "The fund's duration is set for 10 years, aiming to pursue Hanjin Group's growth from a long-term perspective."

In response, the Hanjin union issued a joint statement on the same day, saying, "Protecting union members threatened by the current spread of COVID-19 and ensuring practical job security are priorities, and we have no interest in the sweet talk of the three-party alliance," rejecting the meeting proposal.

The union continued, "It seems KCGI was more eager for their meeting proposal to be publicized than to wait for the opinions of the Hanjin union," criticizing it as "a childish idea to shake the inside of Hanjin Group."

The union warned, "We can never trust the sincerity of the three-party collusion of greed and self-denial," and added, "The three-party alliance should no longer deceive the Hanjin union or shake Hanjin Group to satisfy the greed of the powerful."