Shareholder Unrest at Korea’s T’way Air Amid Leadership Disputes
T’way Air’s second-largest shareholder, Daemyung Sono Group, which owns 26.77% of the airline, has demanded the resignation of the carrier’s senior management, accusing them of failing to secure capital necessary for smooth operations and safety compliance.
A T’way Air spokesperson confirmed receipt of Daemyung Sono’s formal request and stated that the airline is evaluating its response. Daemyung Sono argues that the airline’s current management is ineffective and advocates for a paid-in capital increase through shareholder allocation to improve operations and upgrade aircraft.
Tensions between shareholders are expected to escalate at the March 2025 meeting, where four of the airline’s seven board members, including CEO Jeong Hong-geun, will either step down or stand for reelection. Daemyung Sono is likely to push for its nominees while courting minority shareholders by emphasizing the need for enhanced safety and financial investment.
Daemyung Sono acquired its stake in T’way Air by purchasing shares from private equity firm JKL Partners in 2024. Currently, T’way Holdings and YeaRimDang, holding a combined 30.07% of the airline, are the largest shareholders. Attempts by Daemyung Sono to acquire YeaRimDang’s shares failed during negotiations.
Known for its activist approach, Daemyung Sono, Korea’s largest resort and hotel operator, owns 22.1% of Air Premia and is speculated to be exploring a potential merger between the two airlines to create synergies with its hospitality business. The March shareholder meeting is poised to shape the airline’s future amid growing unrest.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com