Hanjin vows to improve transparency in corporate governance
Hanjin Group said on Feb.13 it will establish internal audit committees under its holding firm and logistics subsidiary to improve transparency in its business management.
The conglomerate, whose business ranges from air passenger service, logistics and hotels, announced measures to improve the corporate governance after it came under fire for the owner family’s wrongdoings.
Under the business plan, Hanjin KAL, the holding firm of Korean Air, and Hanjin Transportation, will add four outside directors to its board, out of seven, and accept scrutiny from auditors.
Hanjin said it aims to post 22.3 trillion (US$19.90 billion) in annual sales by 2023, up from 16.5 trillion won in 2018, by bolstering its key businesses.
To reach the goal, the company said it will increase investment in new airplanes, expand air routes and partnerships with other companies.
It also plans to step up logistics capacity and boost collaboration between its hotel and airline businesses to create a positive synergy effect.
In December, Korean activist fund KCGI bought an 8-percent stake in Hanjin Transportation to become its second-largest shareholder after Hanjin KAL. The fund said it will push to enhance the firm’s decision-making process.
Korean Air Chairman Cho Yang-ho has been charged with dodging inheritance tax and embezzling company funds. Cho‘s wife has been accused of multiple assaults on employees and illegally hiring foreign housekeepers.
Cho’s two daughters also underwent probes by law enforcement last year on charges similar to those against their mother, including the eldest, Hyun-ah, who infamously drew international attention for her “nut rage” incident in 2014.
By Ram Garikipati and newswires (firstname.lastname@example.org)