Korean Air, Hyundai Heavy, Hanwha, Samsung Techwin eyeing aircraft maker
The planned privatization of Korea Aerospace Industries has hit a snag with opposition from the labor union which wants the company to be a public corporation.
The labor union of the state-funded aircraft maker has decided to obstruct a visit by the president of Korea Finance Corporation, KAI’s largest shareholder, scheduled for next week.
The KoFC got KAI listed last June, making it possible to sell off the major shareholder’s stake starting next month under a rule that bans the sale for six months.
Korean Air, Hyundai Heavy, Hanwha and Samsung Techwin are known to be among the potential bidders.
Having recently completed the sale of its stake in Hynix Semiconductor, KoFC is ready to focus on the sale of KAI.
Chin Young-wook, chief executive of KoFC who took office in September, plans to visit KAI in Sacheon, South Gyeongsang Province, next Monday.
About 30 managing staff of the KAI labor union, however, are set to travel to Seoul on the same day for a meeting with Chin. The union claims that Chin has ignored its requests to explain the sale. The group plans to physically block Chin’s entrance into the company should he refuse to meet with them.
“There have been so many stories for years about how the sale will be made. The KoFC must present its position as soon as possible,” a union official said.
The union wants KAI to be made public with 30 percent of its stake held by the government. It insists that it will be easier for KAI to develop its own technologies as a public company.
Currently, KoFC holds a 26.41 percent controlling stake. Samsung Techwin and Hyundai Motor hold 10 percent each, and employee stock ownership association 9.56 percent.
The union paid a consulting firm 100 million won it collected from union members to make a policy proposal that the government should be the major shareholder with a 30 percent stake in KAI. They sent the proposal to the government and the National Assembly.
The KoFC is saying that now isn’t the best time to push for privatization of KAI as its share price has gone up too much.
“We took a major weight off our shoulders with the sale of Hynix mostly over. But contrary to the concerns, the circumstances for our stake sale in KAI aren’t that great as KAI’s share prices have risen too high,” Chin said.
KAI’s stocks have been trading at around 39,000 won per share this week, up from 15,500 won at the time of the initial public offering on June 30.
By Kim So-hyun (
sophie@heraldcorp.com)
