[Economic information] Discussing the sale of Asiana Airlines
The government officially discusses how to hand over Asiana Airlines, which failed to sell, to Hanjin Group.
The government is scheduled to hold a meeting of ministers related to strengthening industrial competitiveness on the 16th, presided over by Deputy Prime Minister Hong Nam-ki, to discuss ways to normalize Asiana management. The Ministry of Finance, Ministry of Land, Infrastructure and Transport, and creditors such as Korea Development Bank and Export-Import Bank attend this event.
The current discussion method is that Korea Development Bank participates in a paid-in capital increase of Hanjin Kal, a holding company of Hanjin Group, and Hanjin Kal buys Asiana shares (30.77%) owned by Kumho Industrial with this funding. Through this, Hanjin Kal will become the largest shareholder in Asiana. The value of the stake (30.77%) held by Kumho Industrial is worth 300 billion won. This means that the number 1 company and the 2nd largest airline companies do not directly merge into one. The method that two large airlines under Hanjin Group operate together is strong.
The government is known to be positive about Hanjin Group's acquisition of Asiana in order to reorganize the aviation industry and strengthen global competitiveness. On the 13th, vice chairman of the Financial Services Commission, Doh Gyu-sang, said, “There is no reason for the government to refuse if it helps in various aspects.” If the government formalizes the acquisition of Hanjin Group Asiana, the discussion is expected to rise rapidly.
However, a plan to separate the maintenance (MRO) organization of Korean Air and Asiana into a separate corporation is also being considered. This is to solve the problem of high cost as Asiana is outsourcing the MRO business like Korean Air does not. Asiana is currently outsourcing the MRO for Lufthansa Technique.
Some fall under the belief that the currently discussed takeover method is advantageous to Hanjin Group chairman Cho Won-tae, who is in dispute over management rights. That is, preferential fertilization may be raised. Currently, Hanjin Kal's stake is 46.71% of the three-party alliance (former vice president of Korean Air Cho Hyun-ah, KCGI, and Bando Construction), ahead of Chairman Cho Won-tae (41.4%). The three-party alliance (Cho Hyun-ah, former vice president of Korean Air, KCGI, Bando E&C), which is in conflict with Chairman Cho, began to protest.
The approval of the Fair Trade Commission's business combination is another task to be overcome. When Hanjin Group has Asiana, its domestic aviation market share exceeds 60%, including low-cost airlines (LCC).
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