By Oh Young-jin
Resentment runs deep.
For more than one and a half hours, Kumho Petrochemical Chairman Park Chan-koo talked calmly about what damaged his relationship with the group’s Honorary Chairman Park Sam-koo, his elder brother.
His bottom line is not about money. “Kumho is not my brother’s company but my father’s,” he declared during an exclusive interview at his office. “Then, why did he make all the important decisions by himself?”
His tone was accusatory, obviously reflecting the sorry state the Kumho-Asiana Group is in.
With the ambitious acquisitions of Daewoo Engineering and Construction and the nation’s largest logistics firm, Korea Express, Kumho Asiana went up to No. 8 in chaebol rankings ahead of rival Hanjin Group.
But now the group is broken apart with the creditors in control.
The younger brother, who didn’t call Sam-koo “elder brother” even once during the entire interview, was bitter.
“The honorary chairman sold his stake in Kumho Petrochemical last November and now has 300 billion won in his possession after tax,” he pointed out.
“The money is parked somewhere.” He said that the money should have been spent to increase his stake in Kumho Tire but the elder brother is sitting on the fence, trying to buy a stake both in the tire firm and Asiana Airlines.”
He stopped short of calling it an act of greed or a managerial boneheaded play but looked tempted to say it.
It is because, by splitting the money, Sam-koo would not be able to raise his stake to over 10 percent, not enough to exercise significant control over either firm.
Going back to the Daewoo and Korea Express acquisitions, Park recollected that he had a big fight with his older brother.
With the overall situation being fluid as it was, he demanded that his brother fire some CEOs.
This request was rejected because they were Park Sam-koo’s men.
Then, he asked for the sale of Korea Express. In 2008, commercial papers issued two years ago came into maturity for 500 billion won. The firm couldn’t go on with these kinds of liquidity problems.
His Korea Express sale request was rejected, too.
“It was my nephew’s work from the start,” he said, adding that his father didn’t want any blemish on his successor.
He said that already in 2005, a succession by brother, unique to Kumho, was abolished, paving the way for Sam-koo’s father-to-son succession.
“It was supposed to be a joint operation,” he said. “I was sidelined from every big decision.” He said that he was not under his elder brother in running the group.
He also said that repairing the relationship with his brother was not possible any time soon and that he had no intention to make such efforts right now.
Prosecutors’ investigations and the ongoing trial into allegations that he created a slush fund with money made through inside trading played a key role in his skepticism.
He thinks he has a strong case and will prove his innocence in court.
Oh Young-jin is The Korea Times' publisher and president. He began to work at The Korea Times in 1988 as a sports writer. Then, he worked as a reporter and later as editor at the City Desk, Business Desk and Politics Desk. He worked as chief editorial writer before taking the current position. He has a keen interest in politics as well as defense affairs.