"Synergy Through the Utilization of Human and Material Resources"
Korean Air announced on the 30th that it has signed an agreement with LS Electric to advance aerospace and defense industry technologies at the International Maritime Defense Industry Exhibition (MADEX) held at BEXCO in Busan.
Im Jin-kyu, Head of Aerospace Business Division at Korean Air (left), and Lee Sangjun, Chief Operating Officer (COO) of Automation CIC at LS Electric, are posing for a commemorative photo after signing an agreement to advance aerospace and defense industry technologies at the 'International Maritime Defense Industry Exhibition (MADEX)' held on the 30th at BEXCO, Busan. Photo by Korean Air
The signing ceremony was attended by Im Jin-kyu, Head of the Aerospace Business Division at Korean Air, and Lee Sangjun, Chief Operating Officer (COO) of Automation CIC at LS Electric.
Through this agreement, the two companies will establish a close mutual cooperation system by utilizing human and material resources and information, and will expand synergies in related business areas.
Specifically, the scope of cooperation will be expanded in various fields, including the establishment of smart factories for the aerospace manufacturing industry, optimization of logistics systems in the aerospace manufacturing sector, and strengthening next-generation aircraft manufacturing and production capabilities.
Recently, the holding companies of both groups, Hanjin KAL and LS, have been strengthening cooperation both inside and outside of their businesses. This move is seen as a response to counter the aggressive acquisition of shares by Hoban Group, which has been increasing its stakes in both companies.
On May 16, LS announced that it would issue exchangeable bonds worth 65 billion KRW to Korean Air. Korean Air can convert these acquired exchangeable bonds into LS shares (equivalent to 1.2% of the total) within five years. Through this, LS can secure Korean Air as an ally in case of emergency.
Hanjin KAL is also expected to receive support from LS in widening its shareholding gap with Hoban. Industry insiders believe that if the stake held by the 'Daishin Core Growth Private Equity Investment Trust (Hanjin KAL PEF Investment)' fund, which matures in August, is put up for sale, it is highly likely that LS will acquire it.
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