3-Ja Yeonhap's Ham Cheol-ho "Vision Disappears Due to Leadership Vacuum... The Reality of KAL"

Candidate for Non-Executive Director from 3-Party Coalition
Accepted Proposal from CEO Kang Sung-bu... "Must Break Authoritarianism and Change Company Culture"

[Asia Economy Reporter Yoo Je-hoon] "The late Cho Jung-hoon, the first-generation founder, was a business leader with the philosophy and vision of transportation serving the nation (輸送報國). However, from the second generation onward, 'authoritarian leadership' took hold, preventing executives from being trained to make important decisions, and by the third generation, even that disappeared, leaving only ad hoc decision-making."

Ham Cheol-ho (68, photo), CEO of Skyworks, is a candidate for the position of non-executive director in the tripartite alliance formed by former Korean Air Vice President Cho Hyun-ah, private equity fund KCGI, and Bando Construction. Having worked for 33 years in strategy, sales, and international affairs at Korean Air and later serving as CEO of T’way Air, he is regarded as the only aviation expert among the inside and outside director candidates of the tripartite alliance.

Meeting Ham at the KCGI office in the International Finance Center (IFC) in Yeouido, Seoul, on the afternoon of the 12th, he defined the current reality of Korean Air as a "lack of vision" and a "leadership crisis." Ham first criticized Hanjin Group’s decision-making system. He said, "Hanjin Group’s major investments are in aircraft, real estate, and others, so they neglect service improvements and the installation of in-flight entertainment facilities such as WiFi," adding, "Instead, the top management is buying airplanes from manufacturers in exchange for rebates, which only increases inefficiency."

Ham also pointed out the lack of vision. Although Chairman Cho Won-tae has liberalized employee dress codes and accelerated convergence with the IT sector, it is far from a future blueprint. He explained, "It seems intended to reform the rigid atmosphere of previous generations," but added, "There are concerns within the company that Korean Air might actually be falling into a comfort zone."

Regarding criticisms about the lack of expertise among the tripartite alliance’s inside and outside director candidates, Ham responded, "While the aviation industry does require high-level expertise, it is more important for the CEO to have a broad perspective to maintain overall balance," and argued, "If the CEO sits at a desk and points out, 'Why is the load factor (L/F) on this route like this today?' the staff cannot work properly. Korean Air’s decision-making paralysis stems from this culture."

The Korean Air labor union has expressed support for the current system due to concerns about large-scale restructuring and the return of former Vice President Cho. Ham said, "Restructuring is necessary, but people should not be cut," emphasizing, "Korean Air employees are the best in the Korean aviation industry, so there is no reason to cut them." He added that there are many silent allies within the company. "Although the labor union supports the current administration, it only represents 20% of all employees," he said, "Many juniors still contact me, and while active executives remain silent, many think, 'This is not right.'"

Ham clearly drew a line regarding rumors of former Vice President Cho’s return. "I recently told the board candidates and shareholders’ meetings directly that she will not participate in management," he dismissed the rumors.

Regarding his own role, Ham said, "I am a 'car man' who joined in 1976 and worked for 33 years. Other inside and outside director candidates only mention the company’s shortcomings, but I believe we should leverage Korean Air’s strengths," adding, "If the CEO and middle managers break down authoritarianism, it is possible. I am willing to endure any role given to me."

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