Year-End Greetings in the Aviation Industry Focused on M&A

Cho Hyun-min and Lee Myung-hee Step Down from Aviation Affiliates... In Line with Agreement with KDB
Korean Air "Fully Committed to Acquisition," Minimizes Personnel Changes; Asiana CEO Replacement Expected

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] The year-end regular personnel appointments at Korean Air and Asiana Airlines focused on preparations for the merger and acquisition (M&A).

While Cho Hyun-min, Executive Director of Hanjin KAL and a member of the Hanjin family, and Lee Myung-hee, Advisor of Jungseok Enterprises, stepped away from airline management, Korean Air minimized personnel changes to ensure a stable M&A process. Asiana Airlines is expected to carry out a major reshuffle including its affiliates soon, with both companies gearing up for full-scale M&A preparations next year.

According to Hanjin Group on the 31st, Cho, the late Cho Yang-ho Chairman’s daughter, resigned from her positions as Executive Director of Hanjin KAL and Vice President of Topas Travel Information the day before. Lee, the mother of Chairman Cho Won-tae, also stepped down from her advisory role at Korea Airport Services, a ground handling company. This means that except for Chairman Cho, the Hanjin family has withdrawn from airline management. This move fulfills the promise made to KDB Industrial Bank, which demanded the exclusion of the founding family from management during Hanjin Group’s acquisition of Asiana Airlines. Instead, Cho was promoted to Vice President of Hanjin Co., Ltd. and retained her Vice President position at Jungseok Enterprises. Lee also continues her advisory role at Jungseok Enterprises.

On the same day, Korean Air’s regular executive appointments saw no promotions. Korean Air explained, "To overcome the COVID-19 crisis and focus company-wide efforts on the acquisition of Asiana Airlines, we minimized executive changes except for some position transfers, and there are no promotions."

Asiana Airlines, which plans to implement personnel changes on the same day, reportedly nominated Jeong Seong-kwon, General Manager of the China Regional Headquarters (Executive Director), and Ahn Byung-seok, Head of the Management Support Headquarters (Executive Director), as Presidents of Asiana Airlines and Air Busan, respectively, after discussions with KDB. In addition, leadership changes are expected at Asiana IDT, where Park Se-chang, eldest son of former Kumho Asiana Group Chairman Park Sam-gu, recently decided to step down, as well as at Air Seoul and Asiana Airport. An industry insider said, "Since the M&A is underway, it seems they appointed CEOs to lead the transitional period instead of personnel close to former Chairman Park."

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