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KCGI Stepping up Pressure on Hanjin Group Chairman
Employees Supporting Beleaguered Chairman
KCGI Stepping up Pressure on Hanjin Group Chairman
  • By Choi Moon-hee
  • February 27, 2020, 11:15
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KCGI is stepping up its pressure on Hanjin Group chairman Cho Won-tae in its bid to seize the group's control.

KCGI is stepping up its pressure on Hanjin Group chairman Cho Won-tae by purchasing Hanjin KAL stocks and leveling criticism at him. However, KCGI’s offensives only tend to enhance unity among members of the Hanjin Group in favor of chairman Cho.

KCGI said on Feb. 25 that its doubts about the introduction of electronic voting and Delta Air Line’s acquisition of shares have not been resolved. It also urged Hanjin Group’s top management, including chairman Cho, to communicate with shareholders.

KCGI is directing criticism at chairman Cho and staging a war for public opinion against him since holding a shareholders' news conference for the normalization of Hanjin Group on Feb. 20. Kang Sung-bu, head of KCGI, attacked chairman Cho by calling him a “poor manager.”

However, criticism is growing against KCGI inside Hanjin Group. A message was posted on an anonymous bulletin board for Korean Air employees to propose that company employees buy 10 Hanjin KAL shares each. In the message, the writer claims that the shareholders association led by KCGI is a “coronavirus-like force” that makes the company sick. Dozens of comments saying “I will buy 50 shares” and “I will buy 100 shares” were posted below the message.

The labor unions of Korean Air, Hanjin and Korea Airport Service and former Hanjin Group executives have expressed their support for chairman Cho. It is unusual for labor unions of Hanjin Group affiliates to clarify their position regarding such a matter as they usually have not done so, industry watchers say.