CEO Choi Jong-gu Resigns from Eastar Jet... Kim Yu-sang Appointed as New Vice President

Eastar Jet, Recently Filed for Court Receivership

Eastar Jet has notified 605 employees of layoffs, raising concerns about mass unemployment in the aviation industry. On the 9th, officials are preparing for an extraordinary shareholders' meeting at Eastar Jet headquarters in Gangseo-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Yoo Je-hoon] Choi Jong-gu, CEO (President) of Eastar Jet, has resigned. According to the aviation industry on the 18th, Eastar Jet recently held a board meeting and promoted Kim Yu-sang, Head of Management Division (Executive Director), to Vice President and appointed him as the new CEO.

President Choi resigned from the CEO position citing responsibility for management difficulties but is reported to have decided to retain the president position. Kim, who has been effectively leading the merger and acquisition (M&A) efforts, is expected to carry out court receivership procedures and sales operations as the new CEO.

After the failed merger and acquisition (M&A) with Jeju Air last year, the company sought a new buyer. However, as the situation did not improve, it recently filed for rehabilitation proceedings at the Seoul Bankruptcy Court, which issued preservation orders and comprehensive injunctions prohibiting creditors from demanding repayment and restricting asset sales and other rights exercises.

The court plans to decide on whether to commence rehabilitation proceedings as early as this month, and if approved, it is expected to initiate a public sale process led by the court.

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