Asiana was ruined when the solo mobile girl deal was broken … President Cho also walked a lot

“I’m wondering if I will be eligible to remain the chairman of the Korean Development Bank if the deal is broken.” In an exclusive interview with the Korean Economic Daily on the 24th, the president of the Korean Development Bank, Dong-geol Lee Dong-geol, revealed that he had taken up his role in the integration of Korean Air and Asiana Airlines. As the director of a political financial institution, he emphasized that he pursued great business under the fate of the aviation industry. The interview, which began at the Korean Development Bank office, Yeouido, Seoul at 10 a.m. that day, lasted more than 100 minutes.

▷ The ‘controversy over preferential treatment of chaebols’ and the ‘government restructuring’ are being criticized by the extremes

“All the airlines in the world cannot survive if government support is cut off. Is it an unconditional preferential treatment to apply to chaebol? The only alternative is a merger. “

▷ What is the base.

“In the merger and acquisition (M&A) process, we focus on minimizing the inflow of funds, normalizing management and the possibility of repayment in the future. We concluded that the merger was the best alternative ”.

▷ Did you run an integrated management simulation?

“We can earn an additional 300 billion won a year. The financial capacity to support 10 trillion won of debt is created at an annual interest rate of 3%. This will dramatically improve the debt structure. “

President Lee said he took up the case of Hanjin Shipping, which went bankrupt in 2017, as a school teacher.

“At the time, the best option was to merge Hanjin Shipping and Hyundai Merchant Marine (now HMM). When Hanjin Shipping went bankrupt, the national shipping industry collapsed. ” Since the airline industry, like the shipping industry, is also a network industry, Lee’s judgment is that a premature bankruptcy decision could destroy the infrastructure industry.

President Lee’s nickname is ‘Byeongbusa’. It is a ‘decoration’ that has been obtained through numerous restructuring processes. The first obstacle of this party is a request for an interim injunction from the tripartite alliance led by KCGI executive director Kang Seong-bu, which is in dispute with Hanjin Group, asking the court to prohibit the issuance of new shares. The first judicial hearing will be held on the 25th. Already this week, the ruling is expected to come out.

▷ What will happen if the provisional provision is accepted?

“The deal will be canceled.”

▷ What is the next step?

“Emergency funds for Asiana Airlines are canceled. Bankruptcy cannot be avoided during the year. The entire aviation industry collapses. I am also considering whether I am eligible to continue to be the presidency of Saint Eun. “

▷ You must have checked it in advance.

“Of course. An advance legal review was also conducted. CEO Kang Seong-bu’s argument is unwarranted.”

▷ Why do you judge like this?

“If you are a large responsible shareholder, you must accept the merger for the future of the aviation industry. Because there is no justification, it is fueling the dispute over management rights. “

▷ The debt of the integrated airline alone is 23 trillion won.

“Instead of worrying about whether the airline in the 23 trillion won debt pile will be able to increase, we have to think about how to get it out.”

▷ It’s a controversial deal anyway.

“If there is a good side, there is no need to go from left to right. It is a question of how to control the side effects. It is unacceptable that the unions and some civic groups oppose the merger in vain ”.

President Lee also drew a line on the controversy over Saneun’s nationalization of Korean Air.

▷ There are many points that this is the nationalization procedure.

“I have no intention of controlling the management with a 10% stake. Won-tae Cho, Chairman of Hanjin Group, will ensure responsible and reliable management. “

▷ Don’t you directly exercise your voting rights?

“We are actively considering setting up a separate organization to decide whether to exercise the voting rights of Hanjin Kal shares. An independent organization made up of external experts decides whether to exercise voting rights on important matters and the KDB will not interfere at all. “

▷ There are criticisms about why not put money directly into Korean Air.

“If Korean Air invests 2 trillion won to take over Asiana, Korean Air will immediately take over the mountain. Then he is immediately nationalized. This is the worst case. “

▷ Why?

“Hanjin Kal’s stake in Korean Air falls below 20%, violating the law on holding companies. KCGI also loses its influence on Korean Air and becomes a duck egg in the Nakdong River. Above all, it is the worst scenario for the government to have control over the airlines. “

President Lee also made it clear that Hanjin Kal’s funding should not be delayed any further. Chairman Lee said, “The dispute over the management rights of Hanjin Group is a never-ending story.” “I couldn’t wait for the dispute between the two parties to end.”

President Lee emphasized that there was no artificial restructuring during the interview. He said: “Not only the Saneun Group and Hanjin, but also the government promised,” he said, “Believe in Saneun and don’t be anxious.” It was also pointed out that if Korean Air restructures, it is a violation of the investment agreement with the KDB. Regarding the suspicion of a previous appointment for the right to vote jointly raised by some civic groups, he stressed that there was no agreement on the other side.

The key to the integrated airline is the managerial skills of Chairman Won-Tae Cho along with the support of the Bank. When asked about this, President Lee was silent for a moment and saved his words. “It is difficult to accurately assess the capabilities of President Cho. However, I think he showed management and leadership skills, such as focusing on cargo sales during the Corona 19 crisis. President Cho also walked a lot, ”he said carefully.

President Lee also indicated that Korean Air should clean up Korean Air assets, such as the Wilshire Grand Center in Los Angeles (LA). President Lee said, “If you want to save the company, it is appropriate to organize unnecessary assets that are not related to the airline industry in principle” and “I hope Korean Air will take care of it.”

“The Korean GMO union … a strike is self-harm”
I’m just giving you a chance to stand down … Unions must stick to the line too

Korea Development Bank President Lee Dong-geol said the GM Korea union strike was “self-harm” and “a justification for withdrawing from GM’s headquarters in the United States.” According to GM Korea and others, the number of production interruptions has reached 20,000 due to the union’s partial strike and the rejection of overtime and overtime since 30 last month. The union is demanding a monthly base salary increase of approximately 120,000 won and an incentive salary of 20 million won or more.

President Lee raised his voice and said, “I don’t understand the common sense that union members who earn an average annual salary of 110 million won are on strike for more incentives.”

President Lee said that if GM headquarters is withdrawn, there is no reason to stop KDB. Earlier, in May last year, GM and KDB agreed on a plan to normalize management to invest a total of $ 4.35 billion in new funding for GM Korea. Consequently, GM has maintained GM Korea’s production facilities for more than 10 years by allocating new cars, and the KDB has the right to stop GM’s withdrawal from the Korean market. President Lee confessed, “There is no way to avoid withdrawal,” adding: “If GM says to withdraw from the factory in a situation where the factory is not operating due to a union strike, the response will be difficult for the mountain”.

He said, “If this situation continues, you may hear that the Korean economy is ruined by the union,” he said. “A social consensus can be reached that major union reform may be necessary.” President Lee emphasized that “the union is holding the local economy, the government and the KDB hostage,” and stressed that “the union must also maintain the minimum line.”

Reporter Kang Kyung-min / Lim Hyun-woo [email protected]