Cho Hyun-ah, the eldest daughter of late Hanjin Group Chairman Cho Yang-ho, released a statement on Friday afternoon to denounce the board decision made by Hanjin KAL in the morning.

In a joint statement with local activist fund Korea Corporate Governance Improvement and midsized builder Bando Engineering & Construction, she said the board decisions consisted of “improvised measures to obtain the votes of the shareholders just before the general shareholders’ meeting without serious consideration of the current crisis and awareness of the problem.

“For example, the sale of its land and building in Songhyeon-dong was already included in Hanjin Group’s financial structure improvement plan in February 2019 at KCGI’s request. Making this as if it is a new way to increase shareholder value is a serious deception of shareholders,” the statement went on.

It added the board plan to make the flagship air transport business competitive has no details, raising serious questions about commitment and integrity. The restructuring plans for the hotel and leisure business are ambiguous without specific schedules and plans, the statement said.

“We are in a situation to overcome the worst financial structure and astronomical deficits and to take adequate measures for shareholders and employees,” it said. By Shin Ji-hye (shinjh@heraldcorp.com)