SEOUL, March 27 (Yonhap) -- Shareholders of Hanjin KAL Corp., the holding company of logistics-to-airline conglomerate Hanjin Group, on Friday approved the reappoinment of the group's heir apparent as a member of its board, bringing him a victory in a family feud over the group's control.
Hanjin Group Chairman Cho Won-tae, 44, defended his board seat by garnering a 56.67 percent approval.
His current post has been challenged by a coalition led by his elder sister Hyun-ah that has called for ousting him from the position over the control of Hanjin Group, which has Korean Air Lines Co. as its flagship unit.
The current chairman had sparred with Hyun-ah, 45, known for her "nut rage" incident in 2014, as she formed an alliance with the homegrown Korea Corporate Governance Improvement (KCGI) fund and local builder Bando Engineering & Construction Co. in January to challenge Won-tae's management of the group.
Hanjin KAl share traded at 56,500 won as of 3:18 p.m., up 29 percent from the previous session's close, as uncertainties surrounding the family feud have been lifted amid the growing impact of the spreading coronavirus outbreak on its business.
The family feud broke out in December when Hyun-ah, the former vice president of Korean Air, lashed out at her younger brother for not heeding their father's wishes.
Won-tae took the helm of Hanjin Group and Korean Air in April 2019 after his father's death.
The Hyun-ah coalition argued that inviting a professional manager would help improve the group's management, financial status and shareholder value.
KCGI said the three-party alliance's combined stake in Hanjin KAL stood at 42.13 percent as of March 24.
The stake is higher than the 33.45 percent collectively held by Won-tae, his mother, younger sister, related parties, Delta Air Lines and the country's leading messaging app, Kakao Corp.
However, the alliance could exercise voting rights over just a 31.98 percent stake they purchased last year during this year's shareholders meeting.
Delta Air and Kakao delegated their voting rights to Hanjin KAL at the annual shareholders meeting, a company spokeswoman said.
The National Pension Service, which owns a 2.9 percent stake in Hanjin KAL, on Thursday said it had decided to vote for the reappointment of Won-tae as executive director.