Hanjin Group "An Unprecedented Crisis... Professional Management Centered on Cho Won-tae Essential"

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Je-hoon] Hanjin Group emphasized on the 11th that a professional management system centered on Chairman Cho Won-tae is necessary to withstand the crisis caused by the recent management rights dispute and the spread of the novel coronavirus infection (COVID-19).

In a press release issued that day, Hanjin Group stated, "To survive an unprecedented crisis, the role of the CEO and management with professional insight and experience in the logistics sector is more important than ever."

According to Hanjin Group, its main subsidiary, Korean Air, has suspended operations on 89 out of 124 passenger routes due to entry restrictions imposed by various countries in response to COVID-19, and about 100 out of 145 passenger aircraft are currently grounded.

Hanjin Group pointed out, "At this critical moment, the ambitions of former Vice President Cho Hyun-ah, who plunged the company into crisis, private equity funds that discard justification for profit maximization, and speculative forces shaking the company through investments unrelated to the industry pose a serious threat to the survival of the group."

Furthermore, Hanjin Group reiterated that the internal and external director candidates to be appointed at the regular shareholders' meeting on the 27th have superior expertise compared to the candidates from the third-party coalition. The group said, "They are experts in various fields who can strengthen the company's fundamentals, such as improving governance, financial structure, and compliance management," and emphasized, "Ha Eun-yong, the internal director candidate and Vice President of Korean Air, is a financial strategist who has worked for the group for over 30 years and will play a key role in effectively overcoming the financial crisis expected from the COVID-19 impact on airlines."

Regarding Chairman Cho as the CEO, they described him as "an air logistics expert who has accumulated experience in core departments such as passenger, cargo, strategy, planning, IT, and materials for 17 years," and stated, "Since his appointment as president of Korean Air in 2017, he has led 10% sales growth over two years despite difficult management conditions and played a major role in achieving the only profit among domestic airlines last year."

Hanjin Group also cited its global network as a strength. The group said, "Chairman Cho is a member of the International Air Transport Association (IATA) Executive Board and chairman of the SkyTeam board, playing a significant role in the global aviation industry," and added, "A CEO's extensive global personal network is an indispensable factor."

Hanjin Group further criticized, "Looking at the candidates from the third-party coalition, they have no experience or expertise in the air logistics industry," and questioned, "In particular, whether candidate Ham Cheol-ho, a former Korean Air employee, and lawyer Koo Bon-ju, who was a legal representative for Bando Construction, can be considered independent candidates is doubtful."

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