Hanjin nears heirs’ breakup

Hanjin Group, the eighth-largest conglomerate in Korea, yesterday reiterated its announcement of a year ago that it would spin off its financial arms to create a separate financial group.
The move is part of a plan to divide the estate of the group’s founder, Cho Joong-hoon, who died last November at the age of 81.
As planned, Cho Jung-ho, vice chairman of Meritz Securities Co., will take over the new financial group made up of the three units to be separated from the group. They are Oriental Fire and Marine Insurance Co., Korean French Banking Corp., and Meritz.
“The companies involved have reduced their cross investments in each other to below 3 percent,” an official from Oriental Fire said. “What is left is our stake in Korean French Banking, which we plan to dispose of quickly. Then we will ask the Fair Trade Commission to approve our spin-off.” Those steps are requirements under Korean law for such divestitures.
Cho Yang-ho, the eldest son of Mr. Cho, will take the helm of 14 companies, including Korean Air Lines Co.
Cho Nam-ho, the second son, will head three heavy engineering subsidiaries, including Hanjin Heavy Industries Construction Co.
The third son, Cho Soo-ho, will head the shipping division, including Hanjin Shipping Co., while the fourth son, Cho Jung-ho, inherits the financial arms of the group.

by Joo Jung-wan