Cho Won-tae: "No Restructuring... Redundant Personnel Can Be Fully Utilized Considering Scalability"

"There Are Indeed Many Duplicate Personnel, but Expanding Routes and Projects Can Fully Resolve It"
"We Will Also Promote Coexistence with the Union"

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

[Asia Economy Reporter Yu Je-hoon] Cho Won-tae, Chairman of Hanjin Group, officially denied the possibility of workforce restructuring arising from Korean Air's acquisition of Asiana Airlines on the 18th. Chairman Cho emphasized, "Considering the scalability from the integration of the two companies, the overlapping personnel can be fully utilized."

On the morning of the same day, at the Korean-American Business Council Awards Ceremony for the late Chairman Cho Yang-ho, hosted by the Federation of Korean Industries at the FKI Building, Chairman Cho told reporters, "It is true that there are many overlapping personnel given the current scale of both companies, but there are no plans for restructuring." ▶Related article on page 5

Hanjin Group and KDB Industrial Bank previously announced that there would be "no artificial workforce restructuring" when revealing Korean Air's plan to acquire Asiana Airlines. However, academia and others have expressed concerns that unless the overlapping elements of the two companies are significantly restructured, a 'winner's curse' is inevitable, given that their combined debt reaches the 30 trillion won range and the impact of the COVID-19 pandemic remains.

Chairman Cho seemed aware of these concerns, stating, "If we expand routes and businesses, it can be sufficiently resolved, and I believe there are many opportunities for us." He reiterated, "We will also make low-cost carriers (LCC) the most efficient and competitive."

Regarding allegations of preferential treatment raised by some, he clearly drew a line, saying, "I do not think so." He explained, "When the Industrial Bank first inquired about our intention, we only said it was possible, and after several meetings and long discussions, the process proceeded. We undertook the merger with a sense of mission to contribute even a little to the Korean aviation industry."

Meanwhile, the Korean-American Business Council awarded a plaque of merit to the late Chairman Cho for his contributions to Korea-US economic cooperation and the Korea-US alliance on the same day. The late Chairman Cho served as chairman of the Korea-US Business Council for six years starting in 2013. Huh Chang-soo, Chairman of the Federation of Korean Industries, said, "Chairman Cho should continue his late father's will and become a strong pillar contributing to strengthening economic cooperation between the two countries and the development of the Korea-US Business Council." Chairman Cho also stated, "All employees of Hanjin Group will strive to contribute to the mutual growth between Korea and the US."

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