Kumho siblings mending strained ties
By Lee Hyo-sik
Park Sam-koo
Park Chan-koo
Two Kumho siblings are poised to mend their strained ties as Kumho Petrochemical, headed by younger brother Park Chan-hoo, has decided to drop lawsuits against Kumho Asiana Group and its Chairman Park Sam-koo.
Kumho Petrochemical said Thursday that the company is withdrawing two lawsuits it filed against Kumho Asiana and its chairman, stressing it will mobilize all resources to bolster its corporate value and fulfill its duties as a responsible corporate citizen amid the prolonged economic slump.
“Many Korean companies are facing a life and death situation. They are increasingly pressed to restructure themselves amid growing global economic uncertainties,” Kumho Petrochemical said. “Unfortunately, we have often times caused conflicts with other entities. We decided that (resorting to legal action) is meaningless when we are at a crossroads for survival.”
The chemical product maker said it will drop all the suits against Kumho Asiana to focus more on its core businesses and boost its corporate value. “We hope that Kumho Asiana can normalize its operations as soon as possible and contribute more to the development of the Korean economy.”
The two sides are also expected to settle a legal dispute over the ownership of the Kumho Asiana trademark.
In response, Kumho Asiana Group welcomed the largely-unexpected move by Kumho Petrochemical, saying that it will work harder to improve bilateral relations.
“We respect Kumho Petrochemical’s decision to drop the lawsuits,” a Kumho Asiana official said. “By ending the seven-year-long dispute, we would like to move forward and do more to contribute to economic and social development in Korea.”
In July, Kumho Petrochemical lodged a suit against Asiana Airlines to nullify its decision to sell Kumho Terminal to a private firm owned by Kumho chairman Park.
It accused the carrier of “breaking the law” and “damaging its corporate value” by selling Kumho Terminal, an operator of Gwangju Express Bus Terminal and five other regional bus terminals nationwide, at a price, lower than market value.
Earlier, Kumho Petrochemical filed another suit against the Kumho Asiana chairman and his subordinates for forcing the company to buy corporate papers issued by Kumho Industrial back in 2009.
A dispute between the two brothers began in 2009 when Kumho Asiana Group fell into a liquidity crisis after it borrowed an excessive amount of money to acquire Daewoo E&C and Korea Express.
The two siblings have been engaged in a series of legal battles, blaming each other for the group’s fall from grace. The two have also clashed over the use of the Asiana trademark and other matters over the past few years.
Kumho Petrochemical, which was separated from Kumho Asiana in 2010, continues to remain the second-largest stakeholder of Asiana Airlines.