Korean Air Chief Fends off Coup Attempt from Sister
29 March, 2020
The National Pension Service has decided to vote with Hanjin Group chairman Cho Won-tae in a struggle with his disgraced sister for control of the conglomerate that owns Korean Air.
The NPS holds the casting vote that could allow Cho to defeat a coup attempt from his sister and her posse of raiders at a shareholders' meeting on Friday.
The NPS holds a 2.92-percent stake in Hanjin KAL, the conglomerate's holding company.
That means the stake held by allies of Cho Won-tae rose from 37.24 percent to 40.16 percent, as the number of shares owned by his foes -- Cho Hyun-ah of "nut rage" notoriety, Bando Engineering and Construction and corporate raiders KCGI -- stands at 28.78 percent.
Cho Won-tae earlier strong-armed his mother and other sister Cho Hyun-ah into siding with him.
There is still a slim chance that he could possibly be thrown into limbo with the support of small shareholders since he requires a simple most attendants at the meeting to survive. But if attendance may be the expected 80 percent, he is safe.
Industry watchers expect the dispute to keep. The raiders' alliance is apparently likely to acquire additional stakes. On Tuesday, they said in a public notice that they acquired yet another 2.01 percent stake in Hanjin KAL.
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