Korean Air Chairman Cho Choong Hoon Steps Down

The management of Korean Air finally changed Thursday, as expected, after President Kim Dae Jung demanded top managers of the carrier resign over the recent string of accidents.
Korea Air held an emergency board of directors meeting on the morning of April 22 and forced the resignation of Cho Choong Hoon, chairman and CEO.
However, the meaning of the dramatic managerial change was eclipsed when Cho Yang Ho, his eldest son who currently serves as president & CEO, was appointed as new chairman & CEO.
Shim Yi Taek, vice president, was promoted to the position of president.
After the KAL crash in China last week, President Kim urged a management overhaul of the airline, pinpointing management as ultimately responsible for the repeated mishaps of the once state-run carrier.
Korea Air at last submitted to the pressure of Chong Wa Dae. But Cho Choong Hoon, the founder of Hanjin group, maintains chairman of the sixth-ranking business group in Korea.
Meanwhile, the opposition Grand National Party criticized President Kim's excessive interference in the managerial affairs of Korean Air, saying that it is against the principle of a market economy.
Similiar concerns are prevalent throughout the industrial sector. Most businesspeople voiced that the KAL affair may leave a bad precedent for the business circle.
They say that President Kim's intervention in a private firm's management proves that he is breaching his self-proclaimed belief and practice of market principles.
On the other hand, Kim's advocates assert his demand is justified because the airline is different from other companies within the private sector. They emphasize that any problem in the company can lead to the loss of human lives and a drop in the international credibility of the country.

Shang-bok Shim : simsb@joongang.co.kr