Chairman Cho Won-tae “The persuasion of the US, the EU and Japan, the acquisition of Asiana must be successful”

Reporter Jung Hye-in of Money Today | 2023.06.06 14:36

Bloomberg TV interview comments

On the 5th (local time), Cho Won-tae, chairman of the Hanjin Group, is interviewed by Bloomberg TV in Turkey, Istanbul / Photo = Bloomberg

In an interview with the foreign press, Chairman Cho Won-tae of Hanjin Group hinted at the possibility of making concessions to international regulators such as the United States, revealing a strong will to complete the merger and acquisition (M&A) with Asiana Airlines. On the 6th, Bloomberg News reported that Chairman Cho said in an interview with Bloomberg TV in Istanbul, Turkey on the 5th (local time), “We are 100% committed to this (acquisition of Asiana Airlines), and whatever it is’ n we have to give it. up, we will definitely do it.” “,” he said. The annual meeting of the International Air Transport Association (IATA) has been held in Istanbul since the 4th. Chairman Cho, who is a member of the executive committee, was also present at the general meeting.

Chairman Cho said in an interview that the United States, the European Union (EU) and Japan “basically demand more competition,” and “we believe there is a good solution to this, and we are confident that we can persuade them . ” Then, “I feel strongly (the acquisition). I will push to the end,” he said, expressing his will to make the acquisition of Asiana Airlines a success.

Korean Air announced plans to acquire Asiana Airlines for 1.8 trillion won in November 2020, when the Corona 19 pandemic (global pandemic) was at its peak. The acquisition plan has currently been approved by competition authorities in 9 out of 12 countries, but has encountered opposition from competition authorities in the US, the EU and Japan.

The EU Commission raised concerns in a report on the 17th of last month, saying that the merger between Korean Air and Asiana Airlines “could limit competition in the passenger and cargo transport market between the European economy and Korea.” The EU is expected to decide whether to approve the merger of the two airlines in August.

In particular, the US Department of Justice is known to be considering legal action to block the merger between Korean Air and Asiana Airlines. Last month, Politico, a US political media outlet, quoted a source as saying, “If Korean Air and Asiana Airlines merge, the Ministry of Justice will file a lawsuit to block the merger, fearing that the competitiveness of key industries such as semiconductors and the number of passengers traveling between Korea and the United States will decrease. is under review.”

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