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Company owned by Tire Bank Chairman’s family files for 'Korea Airways' trademark… Is a name change for Air Premia on the horizon?

[비즈한국] It has been confirmed that 'Seonggong-eul-mandeuneun' (Creating Success) Co., Ltd. has filed for new airline-related trademarks. Seonggong-eul-mandeuneun is a company 100% owned by the family of Kim Jung-kyu, Chairman of Tire Bank. The company is currently pursuing the acquisition of a 22% stake in Air Premia. Consequently, speculation is emerging that the company may intend to change Air Premia’s name following the acquisition of the stake.

AP Holdings currently holds a 48% stake in Air Premia. AP Holdings is a company 100% owned by Chairman Kim Jung-kyu’s family. Earlier this year, AP Holdings sought to acquire an additional 22% stake in Air Premia, which was held by Daemyung Sono Group through JC Aviation No. 1 Limited. Once the acquisition process is complete, AP Holdings will hold a majority stake of 70% in Air Premia.

According to the aviation industry, the entity acquiring the 22% stake in Air Premia was recently changed from AP Holdings to Seonggong-eul-mandeuneun. Seonggong-eul-mandeuneun is a company 100% owned by Chairman Kim Jung-kyu’s three daughters: Kim Seung-yeon, Kim Sung-yeon, and Kim Soo-yeon. Even if Seonggong-eul-mandeuneun acquires the stake instead of AP Holdings, Air Premia will remain under the control of Chairman Kim Jung-kyu’s family. The acquisition of the Air Premia stake is expected to be completed by the end of September. The primary businesses of Seonggong-eul-mandeuneun include plastic manufacturing and sales, as well as real estate leasing.

Seonggong-eul-mandeuneun has grown significantly with the support of Tire Bank. Since its establishment in 2017, the company has borrowed a substantial amount of money from Tire Bank. As of the end of last year, Seonggong-eul-mandeuneun’s borrowings from Tire Bank totaled 82.4 billion won. Considering that the company’s revenue last year was 83.9 billion won, this is a figure that cannot be ignored (Related article: 'Air Premia Stake Acquisition' Tire Bank Behind the Growth of Chairman Kim Jung-kyu’s Family Company).

Amidst this, according to the Korean Intellectual Property Office's Kipris (Korea Intellectual Property Rights Information Service), Seonggong-eul-mandeuneun filed for two trademarks in July: ‘KOREA AIRWAYS’ and ‘KOREA STARAIR.’ Both trademarks are reminiscent of an airline. The classification for these trademarks is Class 39, with designated goods including air transport, consulting services in the field of air transport, seat reservation for air travel, and traffic information services.

In response, some in the aviation industry are speculating that the Chairman’s family intends to change the company name after acquiring Air Premia. However, in the case of 'KOREA AIRWAYS,' it is similar to the English name of Korean Air, ‘Korean Air,’ which may make it difficult to use. Article 23 of the Commercial Act states, "No person shall use a trade name for any dishonest purpose that may cause confusion with another person's business."

The Unfair Competition Prevention and Trade Secret Protection Act (Unfair Competition Prevention Act) also prohibits "acts of causing confusion with another person's goods by using, selling, distributing, importing, or exporting goods that use a sign identical or similar to another person’s name, trade name, trademark, or any other indicator of a person's goods that is widely recognized in Korea."

Meanwhile, a recent variable has emerged within Tire Bank. In July, Chairman Kim Jung-kyu was sentenced to three years in prison for charges including tax evasion and is now incarcerated, making it difficult for him to engage in direct management activities for the time being. Chairman Kim currently serves as the representative of both AP Holdings and Seonggong-eul-mandeuneun, making it difficult for Seonggong-eul-mandeuneun to make swift decisions.

BizHankook contacted Seonggong-eul-mandeuneun to hear their position on the matter, but a company official said, "I don't want to receive calls like this," and hung up the phone.