Jowon Tae Reaffirms "No Restructuring Plans or Price Increases"

Chairman Cho Won-tae of Hanjin Group is receiving a plaque of appreciation on behalf of the late Chairman Cho Yang-ho at the 32nd Korea-US Business Council General Assembly held on the 18th at the Federation of Korean Industries building in Yeongdeungpo-gu, Seoul, and answering questions from the press. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporters Kim Hyewon and Yoo Jehun] Cho Won-tae, Chairman of Hanjin Group, reiterated that there are "no plans for restructuring" amid concerns over restructuring triggered by Korean Air's push to acquire Asiana Airlines.

On the 18th, at the Korean-American Business Council Awards Ceremony held at the Federation of Korean Industries (FKI) Hall hosted by the FKI, Cho met with reporters and said, "It is true that there is a lot of overlapping personnel so far, but considering the scalability of both companies, they can be utilized sufficiently."

Cho added, "If we expand the routes of Korean Air and Asiana Airlines and grow the business, it can be done sufficiently and there are many opportunities," and said, "We will also make the low-cost carriers (LCC) the most efficient and competitive."

Regarding the monopoly controversy, he firmly stated, "There may be concerns, but there will never be any inconvenience to customers or price increases."

Regarding allegations of special favors raised by some, he explained, "I don't think so," adding, "When the Korea Development Bank first asked about the intention, I only said it was possible, and after meeting several times and discussing for a long time, it proceeded." He further explained, "We undertook the merger and acquisition with a sense of mission to contribute even a little to the Korean aviation industry."

Regarding the hostile takeover forces of Hanjin Kal, the 'Shareholders' Coalition for the Normalization of Hanjin Group (hereinafter the 3-party coalition),' which opposed this acquisition and announced legal action, he said, "There is no plan for (countermeasures)." He continued, "I think the family conflicts are issues that must be continuously resolved," and said, "Management activities have been possible because of family cooperation, and we intend to maintain this going forward."

On this day, the Korean-American Business Council awarded a plaque of merit to the late Chairman Cho, who served as chairman of the Korean-American Business Council from 2013 to 2019, and Chairman Cho received it on his behalf. Huh Chang-soo, Chairman of the FKI, said, "Former Chairman Cho elevated the aviation industry to a global level and contributed not only to economic cooperation between the two countries but also to the Korea-US alliance through the Korean-American Business Council over the past six years. All businesspeople from both countries were moved by his passion in handling every agenda item," honoring the late chairman's spirit.

Chairman Cho expressed gratitude, saying, "Living a life remembered by someone is very valuable," and added, "It is even more meaningful that all of you representing the Korean-American business community remember and recognize my father’s achievements." He also said, "I will remember and carry on the work my father devoted himself to during his lifetime," and added, "Based on this, all executives and employees of Hanjin Group will contribute to the mutual growth of Korea and the United States."

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