Korea Development Bank Welcomes Injunction Dismissal, "Boosts Momentum for Aviation Industry Restructuring Plan"

Korea Development Bank: "With the Court's Wise Judgment, Momentum Grows for Restructuring the Aviation Industry"
KCGI Should Put Aside Exhaustive Debates and Contribute to Overcoming the Aviation Industry Crisis
Reflecting Public Expectations and Concerns to Strengthen Aviation Industry Competitiveness

As the court's decision on Korean Air's acquisition of Asiana Airlines approaches, on the 30th, Korean Air and Asiana Airlines passenger planes were moving toward the runway at Gimpo Airport apron in Gangseo-gu, Seoul. The Seoul Central District Court is expected to deliver a ruling today or tomorrow on the injunction request filed by the activist private equity fund KCGI against Hanjin KAL to prohibit the issuance of new shares. If the court dismisses the injunction request, the acquisition process will accelerate, but if the injunction is granted, the acquisition is likely to be canceled. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kangwook Cho] On the 1st, the Korea Development Bank (KDB) announced that the dismissal of KCGI's application for an injunction to prohibit the issuance of new shares by Hanjin Kal has given great momentum to the promotion of a restructuring plan for the aviation industry to overcome the unprecedented COVID-19 crisis and prepare for a post-corona resurgence.

KDB urged KCGI to put aside the long-standing exhausting disputes and move away from the management rights conflict frame, and to support efforts to overcome the crisis in the national key industry of aviation, strengthen competitiveness, and secure employment stability for aviation workers.

KCGI, as a major shareholder of Hanjin Kal, was also requested to take responsibility for the severe crisis situation and to provide productive and constructive proposals.

Since the announcement of the aviation industry restructuring plan on the 16th, KDB has been able to listen to various expectations and concerns from the public, and emphasized once again that it will do its best as a sound and ethical management watchdog to ensure that the integrated national airline is reborn in a way that meets the public's expectations by reflecting these voices well in the future implementation process of the plan.