Hanjin Shipping could sail alone

Industry

Published: 12 Jan. 2009, 01:15

Hanjin Shipping could sail alone

Korean Air signed a deal last August with state-run Uzbekistan Airways to build an international logistics center at Navoi Airport in Uzbekistan and operate cargo flights on the Incheon-Navoi-Milan route. Uzbekistan’s Deputy Prime Minister Rustam Azimov, left, Hanjin Group Chairman Cho Yang-ho, right, and Korean Air’s flight operations head Lee Yo

If Korean Air covers the skies, Hanjin Shipping does its work on water. Hanjin Shipping, although a Hanjin subsidiary, is known to be a bit detached from the group in terms of management. Industry experts say the company will likely break off from the group in the future. Hanjin Group Chairman Cho Yang-ho has even said that if Hanjin Shipping’s third-generation owners can manage independently, he will amicably agree to the separation.

Presently, Hanjin Shipping’s chairwoman is Choi Eun-young, the widow of the company’s former chairman, Cho Soo-ho, the third-oldest-son. Choi was appointed chairwoman in 2007, a year after her husband died.

The global shipping company is one of the biggest in the world and boasts around 7 trillion won ($5.27 billion) in annual earnings. Choi maintains an “owner’s presence” at the company, allowing the president and CEO, Kim Young-min, to handle everyday operations. Kim is a finance professional, having worked for Citibank’s U.S. and overseas branches of for more than 20 years. He was promoted to vice president in 2004 after working for TTI (Total Terminals International), a U.S. terminal operating company founded by Hanjin Shipping, since 2001.

As for the other siblings in Hanjin Group’s founding family, Cho Nam-ho, the second-oldest son, is chairman of Hanjin Heavy Industries and Construction Co., which joined the Hanjin Group in 1989 and separated from the group in 2005. Cho Jung-ho, the youngest, is chairman of Meritz Financial Group, which is now separate from Hanjin Group.