Sibling Rivalry
Kumho Asiana Group Chairman Park Sam-koo lost a lawsuit against his younger brother, Kumho Petrochemical Chairman Park Chan-koo, for not selling Kumho Petrochemical's stake in Asiana Airlines.
Earlier, Kumho Industrial Co., a subsidiary of the Kumho Asiana Group, brought a legal suit demanding that Kumho Petrochemical abide by its promise to sell Kumho Petrochemical's stocks in accordance with an agreement with its creditors. But the Seoul Central District Court’s ruling said on Jan. 15 that it cannot be said that the plaintiff and the defendant came to an agreement to transfer the stocks.
Immediately after the Kumho Group entered its workout program in 2010, the group split into Kumho Asiana Group and Kumho Petrochemical due to a conflict between the two sons of the group's founder. Kumho Industrial Co. and Kumho Petrochemical hold 30.08 and 12.61 percent of the stake in Asiana airlines, respectively.
Kumho Asiana Group sued Kumho Petrochemical in April last year. According to a representative of the group, the two brothers agreed with creditors that the older brother, Chairman Park Sam-koo, would dispose of his shareholding in Kumho Petrochemical, and that Kumho Petrochemical would sell 100 percent of its Asiana Airlines stake to separate the group. However, Kumho Petrochemical did not abide by its promise, the group representative said.