Korean Air to reform corporate structure
Korean Air has announced plans to change its corporate structure, forming a new holding company.
Under the new structure, which will come into place from 1 August 2013, Korean’s running will be split between two entities – Hanjin KAL Holdings and Korean Air. Hanjin KAL Holdings will be responsible for the investment and general business management sides of the business, while Korean Air will handle airline’s operations and day-to-day running. Korean said the revised structure would help “increase the company’s asset value and improve its transparency”.
The existing shareholders of Korean Air will receive their shares of the new holding company, and Tai Soo Suk, current president & chief operating officer of Hanjin Transportation Co Ltd, has been appointed to the same role in Hanjin KAL Holdings.
Korean Air forms part of the Hanjin Group – a South Korean conglomerate that also controls Hanjin Shipping, one of the world’s largest container shipping companies.