Kumho Asiana Group headquarters building. (Photo = Kumho Industrial website promotion brochure)
A lawyer affiliated with KL Partners, a law firm that previously consulted on major capital transactions of Kumho Asiana Group, is under investigation by the prosecution regarding the suspicion of’unfair support for affiliates of Kumho Asiana Group’. In addition, it was confirmed that the KDB and key officials of NH Investment & Securities, who managed Kumho Asiana Group or were involved in major capital transactions of Kumho Asiana Group, are also being investigated by the prosecution. It seems that the investigation of Kumho corruption is expanding to the periphery of Kumho Asiana Group affiliates.
According to the legal and business circles on the 18th, the prosecution’s investigation is expanding in all directions, including attorney A belonging to KL Partners and former Kumho Asiana Group restructuring officers belonging to the Korea Development Bank under investigation by the prosecution.
Earlier, the Seoul Central District Prosecutors’ Office of Fair Trade and Investigation seized and searched the Kumho Asiana Group headquarters and Asiana Airlines offices in Gangseo-gu, Seoul in November last year, and recently confiscated and searched the Kumho Terminal Gwangju headquarters and Seoul offices, Asiana Airlines headquarters and affiliates offices.
Kumho corruption caused damage to the group by unreasonable financing in the process of rebuilding and rebuilding the group (Kumho Industrial and Asiana Airlines, etc.), which had been almost disbanded by former Kumho Asiana Group chairman Park Sam-koo. It refers to the suspicion of receiving unfair support from affiliates. The Fair Trade Commission imposed a correction order and a fine of 32 billion won in August last year, saying that Kumho Asiana Group used Asiana Airlines and other affiliates to unfairly support Kumho Express (Kumho Holdings), which has a high total stake. At the same time, Kumho Industries, Asiana Airlines, former chairman Park Sam-koo, and two executives from the strategic management office at the time were accused, and the prosecution has continued since then.
A lawyer from KL Partners, who is being investigated by the prosecution, has worked as a key assistant managing major Kumho Group deals. Including advice on Kumho Asiana Group’s sale of Asiana, Kumho Corporation’s merger and acquisition of Kumho Terminal (2016) △ Merger and acquisition of Kumho Express (2017) △ Sale of Kumho office building (2018) △ Asiana Airlines issuance of convertible bonds (CB), etc. He was in charge of legal advice on deals in Asiana Group’s good luck.
An official from the legal profession said, “It is an investigation of the nature of a reference person,” and “I know that in the process of expanding the investigation, a person familiar with Kumho Asiana Group’s major transactions was called.”
Interestingly, Attorney A is currently serving as legal advice to another Kumho family member, Park Chul-wan, managing director of Kumho Petrochemical. Managing Director Park Chul-wan is in dispute over management rights by making several shareholder proposals to Kumho Petrochemical, which is managed by his uncle Park Chan-gu, chairman of Kumho Petrochemical Group.
KL Partners attorneys <블로터>“I have nothing to say” about the prosecution’s investigation on a phone call in Seoul. In addition, regarding the relationship between Kumho Asiana Group and Park Chul-wan, managing director of Kumho Petrochemical, he said, “There is no relationship at all.”
In addition, former Kumho representatives from Korea Development Bank, who were in charge of major capital transactions of Kumho Asiana Group, and key officials from NH Investment & Securities were investigated by the prosecution. In particular, the former Kumho Asiana Group restructuring officers at the Industrial Bank are believed to be conducting investigations even for retirees.
An official from the financial industry said, “I know that I came to the prosecution directly and made a statement.” “Saneun is in a position to manage Kumho Asiana Group’s main creditor bank at the time of the estimation of unfair support for affiliates of Kumho Asiana Group.” He added, “I know that an investigation into the KDB and NH Investment & Securities officials has also been carried out for allegations of corruption other than allegations of unfair support.”
Kumho Asiana Group is on the verge of dissolution due to the insolvency of Kumho Express, which serves as a holding company for Asiana Airlines and the group. In addition to the contents of the FTC’s accusation, the prosecution’s investigation includes numerous capital transactions made in the past, including the Kumho trademark contract, the Vietnamese hotel Asiana Plaza Saigon equity transaction, the Kumho Industrial equity TRS transaction, the sale and accounting treatment of Kumho Resort, and the equity transaction of affiliates using Kumho T&I. It seems to be expanding.
An official from the legal profession said, “As the number of persons involved has already been detained and further investigations are being conducted, more suspects are expected to come out.”