Korean Air passed the amendment of the articles of incorporation at the temporary shareholders’ meeting to implement a paid increase of 2.5 trillion won in order to overcome the opposition of the national pension, the second largest shareholder, and to raise the cost of acquiring Asiana Airlines.
At the extraordinary shareholders’ meeting held at the headquarters of Korean Air in Gonghang-dong, Seoul at 9 am on the 6th, the amendment of the articles of incorporation to implement a paid increase of 2.5 trillion won was listed as an agenda and passed with overwhelming approval.
The National Pension Plan with an 8.11% stake could not be matched against the majority shareholder Han Jin-Kal and a related party (31.13% stake), and most minority shareholders, who owned 50% of the total shares, agreed to take over Asiana Airlines.
The amendment to the articles of incorporation was approved with 69.98% of the attending shareholders. According to the articles of incorporation, the total number of shares specified in Article 5, Paragraph 2 of the Articles of Incorporation has changed from 250 million shares to 700 million shares.
Accordingly, Korean Air will be able to implement a paid-in increase to shareholders of 2.5 trillion won, which is due to be paid on March 12, as scheduled.
Hanjin Kal, the major shareholder of Korean Air, is also planning to invest 730 billion won. On the 15th, it plans to deposit an intermediate payment of 400 billion won with Asiana Airlines.
The variable for the integration of Korean Air and Asiana Airlines is the examination of domestic and international business combinations. Korean Air is reportedly scheduled to submit a business combination report to the Fair Trade Commission and overseas competition authorities in the middle of this month.
The issue is the concern of monopoly. Korean Air is not in a monopoly position because Incheon Airport’s passenger slot share is only 38.5% when it is integrated with Asiana Airlines, but we do not know how the results will come out.
It is expected that the main variable will be how fair price interprets Asiana Airlines’ non-renewable status.
Reporter Hwang Ji-yeon [email protected]
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