1st Anniversary Press Conference of KDB President
"KAL-OZ Merger, Results Expected as Early as Q3"
Kang Seok-hoon, Chairman of the Korea Development Bank, stated on the 20th that regarding the final collapse of the merger between Korean Air and Asiana Airlines, “We are not considering Plan B at all,” and added, “(If early) I expect the results of the overseas competition authorities' corporate merger review to come out in the third quarter of this year.”
On the same day, Kang held a press conference marking his first anniversary at the head office in Yeongdeungpo-gu, Seoul, and said, “Now is not the time to prepare for the failure of the merger between Korean Air and Asiana Airlines, but rather the time to devote all efforts to the merger.”
Regarding the merger of the two major airlines and the expectation that the review by competition authorities in the United States, the European Union (EU), and Japan will not be easy, Kang said, “Since the merger discussions between the two companies have been ongoing for more than two years, it is difficult to say whether it will be easy or not,” and added, “It is clear that the situation is difficult.”
Kang also emphasized, “Although the corporate merger process is not easy, the integration of the two national airlines is an essential task for the fundamental survival of Asiana Airlines and the restructuring of the Korean aviation industry. Therefore, we are encouraging Korean Air’s active response to persuade overseas competition authorities and requesting support from government ministries, doing our best to complete the review promptly.”
Regarding concerns that overseas competition authorities might impose additional reductions in Korean Air-Asiana Airlines’ slots (the number of takeoffs and landings per hour) as a condition during the review process, he said, “Slot reductions always occur during airline mergers; the issue is not the reduction itself but the extent of the reduction,” and added, “We are working to minimize the slot reductions.”
Meanwhile, Kang said that a stock purchase agreement (SPA) for the sale of HMM shares could be possible within this year. He stated, “Since the sale process is ongoing, it is difficult to provide specific details, but after tapping the market, we found that there are candidates interested in acquiring HMM shares,” and added, “Since it requires a large amount of funds, it is difficult to say ‘we are confident’ at this stage, but I can say that there are quite a few interested companies.”
Regarding KDB Life Insurance, which is also being put up for sale, Kang said, “I know that several companies are actually interested in acquiring KDB Life Insurance,” and added, “We plan to start the bidding announcement next month, and this time, we judge that the possibility of sale is high.”
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