After chairman's death, what's next for Hanjin Group?
- 5 years ago
조양호 회장 별세,... 한진그룹의 미래?
Following Hanjin Group Chairman Cho's death,.. much attention is being drawn to the cloudy future of his family business, and our Seo Bo-bin reports,... his son will likely take over, but there are other options too.
Right after the news broke, shares of Hanjin Kal, the holding company of Hanjin Group soared 22 percent.
Investors appeared to be relieved at the end of the scandals involving the late Cho Yang-ho.
But there are big questions about the next in line at Hanjin Group.
It could be the late chairman's son Cho Won-tae, who is CEO of Korean Air.
He's the only one in the family still involved in the business, so it seems likely that the succession will center on him.
His sisters have both been part of high-profile scandals and are considered to be out of the picture.
There's also a local activist fund called Korea Corporate Governance Improvement that could try and assert itself in management.
Another issue for the Cho family is tax on their inheritance.
The Cho family owns about 30 percent of Hanjin KAL.
Hanjin KAL is the holding company of Hanjin Group, which operates Korean Air, a massive shipping company and more than a dozen other affiliates.
It's been estimated that that they'll owe inheritance tax worth almost 150 million U.S.
dollars.
And to cover that, it's said that they might have Hanjin KAL and Hanjin issue a bigger dividend.
Alternatively, the Cho family could choose to give up their inheritance and let the company be run by professional managers.
Seo Bo-bin, Arirang News.
Following Hanjin Group Chairman Cho's death,.. much attention is being drawn to the cloudy future of his family business, and our Seo Bo-bin reports,... his son will likely take over, but there are other options too.
Right after the news broke, shares of Hanjin Kal, the holding company of Hanjin Group soared 22 percent.
Investors appeared to be relieved at the end of the scandals involving the late Cho Yang-ho.
But there are big questions about the next in line at Hanjin Group.
It could be the late chairman's son Cho Won-tae, who is CEO of Korean Air.
He's the only one in the family still involved in the business, so it seems likely that the succession will center on him.
His sisters have both been part of high-profile scandals and are considered to be out of the picture.
There's also a local activist fund called Korea Corporate Governance Improvement that could try and assert itself in management.
Another issue for the Cho family is tax on their inheritance.
The Cho family owns about 30 percent of Hanjin KAL.
Hanjin KAL is the holding company of Hanjin Group, which operates Korean Air, a massive shipping company and more than a dozen other affiliates.
It's been estimated that that they'll owe inheritance tax worth almost 150 million U.S.
dollars.
And to cover that, it's said that they might have Hanjin KAL and Hanjin issue a bigger dividend.
Alternatively, the Cho family could choose to give up their inheritance and let the company be run by professional managers.
Seo Bo-bin, Arirang News.