Korean Air CEO to withdraw from all affiliate posts
[THE INVESTOR] Korean Air Lines announced on June 15 that its president and CEO Cho Won-tae will resign from all posts at its five affiliates, to promote the company’s “transparency and management efficiency.”
As the only son of Hanjin Group Chairman Cho Yang-ho, Won-tae took helm of the country’s largest full-service carrier in January. He was also CEO of five affiliates -- Hanjin KAL, Korea Airport Service, UniConverse, Hanjin Information Systems & Telecommunications and Jin Air.
In the face of mounting challenges from budget carriers and slowing demand from China, Cho will focus on the core airline business, said the company in a statement.
The group also announced that Chairman Cho and his three children will transfer their entire personal stakes in UniConverse to Korean Air. The airline company and Won-tae were charged last year for internal transactions within Hanjin Group. Korean Air and its affiliates Cyber Sky and UniConverse were slapped a penalty of 1.43 billion won (US$1.27 million).
By Hwang You-mee (firstname.lastname@example.org)