Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
KDB goes all out to calm angry Asiana union
Unionists from Korean Air and Asiana Airlines hold a rally in front of the National Assembly in Seoul, Wednesday. / Yonhap
By Park Jae-hyuk
Chairman Lee's inconsistency considered favorable to HDC
By Park Jae-hyuk
The Korea Development Bank (KDB) has apparently been making moves to sooth a union at Asiana Airlines after the latter began legal action against KDB Chairman Lee Dong-gull over his recent comments on the carrier's possible bankruptcy.
The state-run lender said Friday it had proposed talks with the union and two different Asiana pilot unions to fulfill its responsibilities in the ongoing aviation industry reform, including the Korean Air takeover of its rival full service carrier.
“Our proposal is intended to take into account the union's opinions about job stability, when we make an investment and carry out post-merger integration procedures,” the KDB said in a press release.
The release came a couple of days after the union strongly protest the KDB chairman for flip-flopping on his stance on the airline's financial soundness.
The chairman guaranteed Asiana's normalization in September, but in a recent interview with a local news outlet, he mentioned the possible bankruptcy of Asiana if the Korean Air deal fell through, adding that the entire aviation industry could collapse.
“The KDB chairman is publicly threatening us, saying it will stop its funding for our company, if the deal ends in failure,” the union said in a statement.
The union is also reportedly considering filing a criminal suit against the chairman, alleging he abused his authority and made threats against aviation workers. The union did not respond to The Korea Times' questions on the issue.
Some market observers also said the KDB chief's remarks may bring an unintentional benefit to HDC Hyundai Development Company which is preparing for a legal battle with Asiana and its owner Kumho Industrial for a 251.5 billion won ($226 million) deposit it paid in an initial takeover deal.
Asiana and Kumho filed a lawsuit earlier this month to request a court to confirm that it does not need to return the deposit to the HDC-led consortium which scrapped its previous plan to acquire the carrier, citing its snowballing debt.
The consortium asked the KDB-led creditors to allow additional due diligence before abandoning its plan, but the creditors rejected the request, causing the rupture of the deal.
Back then, the KDB claimed that Asiana's normalization was possible, but the chairman's latest remarks can be seen as proof that the air carrier is in a critical condition.
Despite the controversy, the financial authority has continued supporting the KDB.
Financial Services Commission Chairman Eun Sung-soo said Friday there was no alternative to the Korean Air takeover of Asiana, if the government wants to save taxes and preserve jobs.