Hanjin KAL Separates CEO and Chairman Roles... Plans Comprehensive Restructuring of Hotel Business

'Anti-Jo Won-tae Alliance' Faces Second Day of Management Improvement Plan

On the 6th, during the Korean Air board meeting, a sense of silence prevailed at the Korean Air Seosomun building in Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Yu Je-hoon] Hanjin KAL has announced a management innovation plan that includes separating the election of the chairman of the board and the CEO, as well as promoting a comprehensive restructuring of its hotel and leisure business.

On the morning of the 7th, Hanjin KAL held a board meeting at the Seosomun Building in Jung-gu, Seoul, where it reviewed and approved the management innovation plan containing these details.

First, Hanjin KAL revised the board regulations to improve the group’s governance structure and enhance management transparency. The position of chairman of the board, which was stipulated to be held by the CEO, will now be elected by the board.

This change allows the separation of the CEO and chairman roles, which the company explains will strengthen the board’s role, increase management transparency, and protect shareholder interests.

Additionally, to reinforce the independence of outside directors, Hanjin KAL decided to compose the Outside Director Candidate Recommendation Committee entirely of outside directors. Hanjin Group plans to have all major group companies, including Hanjin KAL, Korean Air, and Jin Air, form their Compensation Committees, Governance Committees, and Outside Director Candidate Recommendation Committees exclusively with outside directors, and also have the board chairman elected by the board.

Hanjin Group will also sell the land of Jeju Paradise Hotel owned by Kal Hotel Network. Furthermore, it will closely reexamine the business viability of the Wilshire Grand Center in Los Angeles (LA), USA, and the Grand Hyatt Incheon in Incheon, deciding on directions such as continuous development and nurturing or restructuring.

To improve financial structure, the group will accelerate the sale of non-core assets and businesses. This includes domestic and overseas real estate owned by group companies and equity stakes simply invested in domestic companies. A Hanjin KAL official explained, "In addition, the group will boldly streamline non-core and low-profit businesses it has operated and focus on its core competency, transportation."

This content was produced with the assistance of AI translation services.