Yonhap News TV

Korean Air before Asiana acquisition lawsuit … I should get over the first hump

When Korean Air began taking over Asiana Airlines, it was involved in a lawsuit that could undermine the acquisition itself.

There seem to be many mountains to overcome before the merger of the two companies creates a “dinosaur airline”.

This is the reporter Jisoo Kim.

Korean Air’s acquisition of Asiana Airlines has reached its first climax.

It is because of the questioning of the “temporary injunction against the issuance of new shares for the Hanjin Kal resolution for a paid capital increase assigned to third parties” requested by the activist private equity fund KCGI to be held on the 25th.

KCGI has applied for an interim court injunction to invalidate Hanjin Kal’s 500 billion won capital increase, in which the Korea Development Bank participates, as a means of defending the management rights of group president Hanjin Cho Won-tae.

KCGI is confronting President Cho by forming a “Three-Party Alliance of Shareholders” in partnership with Bando E&C and former Korean Air Vice President Cho Hyun-ah.

If the application is sued in court, it is possible that the acquisition could be canceled because it is difficult for Korean Air to obtain funds to acquire Asiana Airlines.

Consequently, the KDB confronts it by pointing out that it is an acquisition to reorganize the aviation industry, which is in crisis due to Corona 19.

Even if the interim injunction request is rejected, KCGI should continue to fight back at the extraordinary general meeting which has requested a call.

They are demanding accountability from the board of directors that led the Asiana Airlines acquisition.

“Since the aviation industry is a national strategic industry, I think it is important for the aviation industry to revive through the merger between Korean Air and Asiana. However, it is important to prepare additional measures after the fact that consumer welfare is undermined to because of the monopoly status. … “

The Fair Trade Commission said it intends to initiate a formal investigation when a business combination report is received, as relevant data cannot be verified on the possibility of abusing the airline’s monopoly status that will be created through the merger.

This is Yonhap News TV reporter Jisoo Kim.

Yonhap News TV article inquiries and reports: katok / line jebo23

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