An activist equity fund challenging Hanjin Group Chairman Cho Won-tae's management control has expressed its opposition to the group’s third-party allotment plan to buy Asiana Airlines. 

The Korea Corporate Governance Improvement Fund(KCGI), a major shareholder of Hanjin KAL, the conglomerate's holding company, raised its voice in a media release on Monday, accusing Cho of using taxpayers’ money to both defend his management rights and take over Asiana while spending none of his own money. 

Earlier in the day, Hanjin Group, which owns the nation’s largest full-service carrier Korean Air Lines, made official its bid to buy the cash-strapped smaller rival Asiana through Hanjin KAL. 

To that end, Hanjin KAL will issue new shares and allot them all to state-run Korea Development Bank, the main creditor of Asiana, using around 500 billion won worth ammunition from the bank so Hanjin KAL shares to be held by Cho and KDB will outnumber that of KCGI. 

Currently, KCGI and its allies, including Cho’s older sister Hyun-ah, hold a 46-point-71 percent stake in Hanjin KAL in total, compared to 41-point-three percent held by the 44-year-old chairman and others. The third-party allotment will give over a 10 percent stake in the holding company to KDB. 

Arguing that the scheme will waste taxpayers’ money and sacrifice other shareholders, executives and employees of Hanjin KAL for the personal gain of the chairman, KCGI said new shares, if they have to be issued, should be issued for all shareholders.