Korea Development Bank Joins Hands with Major Hanjin KAL Shareholders KCGI and Bando Construction

"For the Successful Integration of the Two Major National Airlines"

[Asia Economy Reporter Park Sun-mi] On the 10th, the Korea Development Bank announced that it has signed a Memorandum of Understanding (MOU) with KCGI and Vantone Construction, major shareholders of Hanjin KAL, to overcome the COVID-19 crisis, enhance the competitiveness of the air transportation industry, and successfully integrate the two major national airlines.

The MOU contains provisions for the development of the air transportation industry, sound monitoring and supervision to establish transparent and ethical management of Hanjin KAL, and good-faith mutual cooperation among shareholders to enhance corporate value.

It also acknowledges that the promotion of the integration of the two major national airlines is a measure for the development of the air transportation industry, and commits to efforts to improve mutual understanding among shareholders through sharing progress on the integration promotion and constructive opinion exchange, while cooperating to ensure the smooth implementation of this plan.

Furthermore, in the event of significant changes related to Hanjin KAL’s management, the parties agreed to actively cooperate to maintain management stability by preventing unnecessary management disputes, and to ensure that the responsibilities and obligations currently imposed on affiliated shareholders apply equally in the event of future changes in management rights, aiming for the successful integration of Korean Air and Asiana Airlines.

A Korea Development Bank official stated, "We expect that this MOU signing will act as a catalyst to accelerate the successful integration of the two major national airlines for the development of the air transportation industry, and become an advanced case of shareholder cooperation for ethical management and enhancement of corporate value."