Dong-geol Lee, Chairman of Korea Development Bank, on Asiana Airlines Sale: "Will Announce Position Next Week"

KDB Industrial Bank Chairman Dong-geol Lee is drinking tea at the '9th Information Security Day Commemorative Seminar for CEOs of Financial Companies' held on the 7th at the Four Seasons Hotel in Jongno-gu, Seoul. Photo by Mo Nam Moon munonam@

[Asia Economy Reporter Kangwook Cho] Lee Dong-geol, chairman of the Korea Development Bank (KDB), said on the 30th regarding HDC Hyundai Development Company's request for a re-inspection and other issues related to the sale of Asiana Airlines, "We will announce (KDB's) position next week."

Chairman Lee made this remark after attending the opening ceremony of the startup support center 'Mapo Front1' and speaking with reporters.

However, when asked whether he sees the possibility of a re-inspection of Asiana Airlines, he was reserved, saying, "(KDB) is not a party to the contract."

Regarding Kumho Industrial's press release claiming that HDC Hyundai Development is distorting facts, he responded, "The materials released by Kumho Industrial (related to the Asiana Airlines M&A) represent Kumho Industrial's position, not that of the creditors' group."

On the same day, Kumho Industrial expressed strong regret in a press release toward HDC Hyundai Development, which demanded a re-inspection, stating, "We have already provided sufficient information regarding business and financial conditions." They added, "HDC Hyundai Development is distorting facts as if sufficient verification has not been conducted, avoiding deal closure, and shifting responsibility onto Kumho Industrial and Asiana Airlines," urging, "Please cooperate sincerely with the procedures to finalize the deal."

In response, HDC Hyundai Development stated, "We are confident that starting the re-inspection as soon as possible is the way to prevent further deterioration of Asiana Airlines and reduce the national burden caused by it," and rebutted, "Please stop actions that belittle the sincerity of the re-inspection request and cooperate with the commencement of the re-inspection within August."

In the market, there are speculations that the deal may collapse as HDC Hyundai Development publicly requested a 12-week re-inspection of Asiana, causing difficulties in the sale process of Asiana Airlines.