Korean Air to Transform Corporate Structure

By August 2013, Korean Air will have transformed into a new holding company structure with two entities: Hanjin KAL Holdings and Korean Air.

Hanjin KAL Holdings will be responsible for investment business management, while Korean Air will be in charge of the overall airline business operations.

The existing shareholders of Korean Air will receive their shares of the new holding company in proportion to their current stocks.

Hanjin KAL Holdings, a new holding company, will take control of investment business, general management of affiliate companies and intellectual properties such as branding and trademarks.

Korean Air, its operating company, will be responsible for airline business operations, from air transport, aerospace, catering, inflight duty free sale to limousine buses.

Mr. Tai Soo Suk, incumbent President and COO of Hanjin Transportation Co., Ltd, has been appointed as the President and COO of Hanjin KAL Holdings.

Korean Air’s Board of Directors approved this reform on 22 March, and the airline will hold an Extraordinary General Meeting to seek approval for the restructuring plan in the late June. The business of Korean Air will be reorganised on 1 August 2013 accordingly.