Lee Dong-geol, Chairman of Korea Development Bank, "If Asiana Contract Fails, All Responsibility Lies with Hyundai Steel"

[Image source=Yonhap News]

[Asia Economy Reporter Kangwook Cho] Lee Dong-geol, chairman of the Korea Development Bank, stated on the 3rd, "If the Asiana Airlines acquisition contract falls through, all legal responsibility lies with HDC Hyundai Development Company (Hyundai Development)."

On the same day, during an online briefing with reporters, Chairman Lee said, "I believe most of Hyundai Development's claims are baseless and maliciously distorted."

He added that if the contract is canceled, a lawsuit for the return of the deposit is inevitable, but Kumho Industrial and the Korea Development Bank have done nothing wrong.

Chairman Lee also said, "Both Kumho and Asiana have made their best efforts in good faith. Regarding the risk of contract cancellation, I think it is due to causes provided by Hyundai Development," and pointed out, "Even if the contract falls through, I expect Hyundai Development will not file a lawsuit for the return of the deposit." He added, "I believe it is right for one to take responsibility for their own mistakes."

He also called for an end to unnecessary disputes. He emphasized that if both sides are sincere, it is time to conclude the contract.

Chairman Lee said, "Hyundai Development requested a re-inspection, but after a strict inspection over seven weeks, if there are changes in circumstances, those should be checked accordingly. I find it hard to understand why they keep demanding a re-inspection," and urged, "During the remaining period, Hyundai Development should carefully consider and request consultations if there are parts that need discussion."

He cited Montgomery Ward and Sears, companies that once dominated the U.S. retail market, as examples, pointing out, "The aviation industry should be viewed with a long-term perspective, not buried in COVID-19."

Chairman Lee said, "One company went into decline, while the other became a large corporation dominating retail," and added, "We need to see how the company that was the strongest and largest retail company just before the war declined." This is interpreted as a warning message to Hyundai Development.

Finally, Chairman Lee said, "Legally, the time to conclude is coming, so we are preparing for all possibilities," and urged, "Both Hyundai Development and Kumho, as parties to the contract, should keep all possibilities open and conduct the final negotiations seriously."