Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Hanjin Group highlights legendary founder’s leadership on 80th anniversary
Cho Choong-hoon, center, founder of Hanjin Group, poses with American soldiers in this undated photo at an undisclosed location in Korea. Courtesy of Hanjin Group
By Lee Min-hyung
Former late chairman drove group’s global leap forward in aviation
Hanjin Group has attributed its decades-long sustainable growth to the undaunted leadership of the firm’s legendary late founder, Cho Choong-hoon, and his successor, the late former Chairman Cho Yang-ho.
Saturday marks the 80th anniversary of the group. Founder Cho established the company with a small truck shortly after Korea was liberated from Japanese colonial rule in 1945. He believed that transport would become the lifeline of Korea’s economy, politics and culture.
He placed particular importance on building trust with his clients. Even after the devastation from the 1950-53 Korean War, he rebuilt the company in only two years with the credibility he earned during the initial phase of his business.
Hanjin Group offered military logistics services for the U.S. during and after the war, signing a $70,000 transport contract with the U.S. Army in 1956 — a mega-sized deal at a time when Korea’s per capita income was under $100.
Cho Choong-hoon, fourth from left, poses during an event to celebrate Korean Air's introduction of a Boeing 747 jumbo jet deployed for its Pacific route, May 1973. Courtesy of Hanjin Group
The devastated postwar business environment was not a hardship for the late founder. Cho was known for his strong confidence and tolerant business attitude, inviting foreign business partners to his home to strengthen the firm’s credibility and trust.
As the company established stable growth in its ground transport business, he turned his eyes to the skies. At the request of then President Park Chung-hee, the Hanjin founder agreed to acquire the once-struggling state-run Korean Air.
Cho saw the request as a national mission, saying that some businesses must continue, even at a loss, if they serve the public good.
He retained all existing employees at the cash-strapped airline and introduced new management systems such as performance-based incentives, which were rare at that time in Korea.
Hanjin Group's late founder Cho Choong-hoon encourages employees at a pilot institution on Jeju Island in this 1996 photo. Courtesy of Hanjin Group
Cho visited maintenance sites for the airline and read technical manuals to engage in detailed discussion with engineers.
That passionate attitude helped Korean Air normalize its business structure rapidly. In 1975, Korean Air surpassed 100 billion won in sales and reported its first revenue despite a global oil crisis.
Believing that education is the best form of social contribution, Cho also took over Inha University in 1968 and Korea Aerospace University in 1979, providing financial and infrastructure support.
Cho also served as a “civilian diplomat,” making a significant contribution to Seoul’s successful bid for the 1988 Summer Olympics by mobilizing his global network in diplomatic and industrial circles.
Hanjin Group's late founder Cho Choong-hoon, left, and the late former Chairman Cho Yang-ho, right, inspect a Boeing 777 jet in this 1995 photo. Courtesy of Hanjin Group
Second-generation heir a pioneer of systemized management
Hanjin Group’s former late Chairman Cho Yang-ho, the founder’s eldest son, is also highly recognized for his achievement in building a foundation for the group’s systemized management.
The second-generation heir of the group modernized his father’s vision by introducing the system-based management.
His philosophy was that “a good system ensures continuity regardless of who leads a company.” In 1989, he built Hanjin Information Systems & Telecommunications to set up the group’s IT infrastructure, contributing to the stable operation of its diverse businesses, including logistics and maintenance.
Hanjin Group's late former Chairman Cho Yang-ho, right, checks the Korean-language audio guide service at Louvre Museum in Paris in this 2008 photo. Courtesy of Hanjin Group
Cho also prioritized safety during his leadership, insisting that complacency leads to accidents. He introduced extensive manuals and safety performance incentives, thereby creating a corporate culture defined by strict adherence to rules.
The late chairman was a strong believer that quality would secure long-term growth. He made bold investments by introducing new aircraft — even in 1997, when Korea was struggling with the Asian financial crisis.
Cho diversified the group’s aviation revenue stream by establishing low-cost carrier Jin Air in 2008, reflecting his firm belief that any cost savings must be returned to customers.
Hanjin Group's late former chairman Cho Yang-ho, center, plants a tree in Mongolia in 2004 as part of Korean Air’s corporate social responsibility activities. Courtesy of Hanjin Group
He also continued his father’s legacy in cultural diplomacy by arranging Korean-language audio guides at art institutions such as the Louvre, the British Museum and the Hermitage. These initiatives elevated Korea’s global image as a cultural patron.
As a sports enthusiast, Cho supported non-mainstream sports such as volleyball, table tennis and speed skating. He was instrumental in helping Korea host the 2018 PyeongChang Winter Olympics.