Court to Decide Tomorrow on Injunction Banning Hanjin Kal's New Share Issuance... Turning Point for 'Korean Air-Asiana Integration'

As the court decision on Korean Air's acquisition of Asiana Airlines approaches, on the 30th, Korean Air and Asiana Airlines passenger planes are moving toward the runway at Gimpo Airport apron in Gangseo-gu, Seoul. Photo by Kim Hyun-min

[Asia Economy Reporter Choi Seok-jin] The result of the injunction application filed by Grace Holdings, an investment purpose company under the private equity fund KCGI (also known as the Kang Sung-bu Fund), which is crucial to the launch of the integrated national airline combining Korean Air and Asiana Airlines, will be announced on the 1st of next month.

An official from the Seoul Central District Court stated on the 30th, "The decision on the injunction case filed by Grace Holdings against Hanjin KAL to prohibit the issuance of new shares is scheduled to be announced tomorrow."

Grace Holdings, which has been in conflict with Chairman Cho Won-tae over management rights as a major shareholder of Hanjin KAL, filed an injunction to prohibit the issuance of new shares with the court on the 18th in protest against Hanjin KAL's resolution for a third-party allotment paid-in capital increase.

Since the decision for Korean Air to acquire Asiana Airlines, KCGI has claimed that the Industrial Bank of Korea's investment in Hanjin KAL is a means for Chairman Cho to defend his management and control rights.

The Industrial Bank of Korea plans to inject 800 billion KRW into Hanjin KAL for the integration of the two airlines, of which 500 billion KRW will be invested through participation in the third-party allotment paid-in capital increase.

Since the payment date for the Industrial Bank of Korea's capital increase in Hanjin KAL is on the 2nd of next month, the court's judgment must be made by the 1st at the latest.

The Civil Division 50 of the Seoul Central District Court (Chief Presiding Judge Lee Seung-ryeon), which is hearing the case, stated at the injunction hearing on the 25th, "We will reach a conclusion by the 2nd of next month at the latest."