[New Year's Address] Cho Won-tae, Chairman of Hanjin Group, "Completion of Asiana Airlines Acquisition This Year"

[Asia Economy Reporter Hyunseok Yoo] Cho Won-tae, Chairman of Hanjin Group, predicted that 2023 will be a year to accomplish the major task of acquiring Asiana Airlines.

In his New Year's address on the 2nd, Chairman Cho emphasized, "If we turn a blind eye to Asiana Airlines' difficult situation, the entire Korean aviation industry will shrink, and our operational standing will also be impacted," adding, "I urge all executives and employees to unite their efforts to successfully complete the task of acquiring Asiana Airlines."

He explained that safety is more important than ever during the aviation industry's normalization process. He said, "We found hope in the sight of once quiet airports bustling again with increased travel demand, and our colleagues who had been absent gradually returning to their posts," but added, "It takes a long time to earn customers' trust as a safe airline, yet that trust can be broken in an instant and is very difficult to restore."

He foresaw that this year will be filled with challenges such as cost burdens, unstable global networks, and changes in air travel patterns in the post-COVID-19 era. However, he expected that the accumulated information over time will help solve these problems. He explained, "The experience accumulated steadily over more than half a century is our excellent database, and we must select and systematize the necessary information from the vast amount of data," adding, "By utilizing data, we will be able to find effective response methods amid many variables."

Chairman Cho also called for thorough reviews to secure demand in preparation for fierce market competition that will arise with the reopening of overseas travel. He stressed, "We must analyze customer needs to identify desired destinations, timing for resuming air travel, and preferred services in advance," and said, "Based on this, we need to decide when and on which routes to increase supply, and what services to develop and apply." He further advised, "If we fall behind even slightly, we may face the so-called 'paradox of demand recovery,' where the market recovers but our performance and profitability remain poor."

Along with this, Chairman Cho emphasized realizing ESG values befitting the stature of Korean Air. He stated, "ESG management is no longer a choice but a necessity for a sustainable future," and said, "Korean Air has recently achieved many results related to ESG management, such as introducing fuel-efficient new aircraft, recycling in-flight items, and operating an ESG committee to improve governance, but we will not be complacent and will seek various ways to realize social value."

Concluding his New Year's address, Chairman Cho encouraged the executives and employees, saying, "We must embark on a path to discover wisdom ourselves, and even if the process is sometimes challenging, by relying on our colleagues and finding the way together, we will surely discover brilliant wisdom," and added, "We are Korea's top experts who put planes in the sky to provide customers with safe and inspiring travel."