AK Holdings Extraordinary General Meeting on the 7th
Appointment of CEO Go Jun as Inside Director
AK Holdings Holds 50% Stake in Jeju Air
Interest in Akyeong Group's Crisis Solver Role Amid 'Boycott'
AK Group has faced another crisis due to the Jeju Air passenger plane crash at Muan Airport. Following the humidifier disinfectant incident, the Jeju Air disaster has sparked signs of a consumer boycott against AK products, with Go Jun, the newly appointed CEO of the holding company AK Holdings, emerging as a savior.
According to the Financial Supervisory Service's electronic disclosure system on the 2nd, AK Holdings plans to hold an extraordinary general meeting of shareholders on the 7th to approve the appointment of Go Jun as an inside director of AK Holdings.
Kim I-bae, CEO of Jeju Air, and other executives are apologizing to the bereaved families on the 29th at Muan International Airport in Muan-gun, Jeollanam-do. Photo by Kang Jin-hyung
Go was appointed CEO of AK Holdings on December 1 last year and will now join the board of directors. AK Holdings has a total of four inside directors, and Go will lead the company as a co-CEO alongside Vice Chairman Chae Hyung-seok of AK Group. AK Holdings explained, "We recommended him as an inside director candidate because we believe he will contribute to the company's development by establishing future strategies for AK Group and enhancing mid- to long-term execution capabilities."
Go is a 'strategist' who has led changes within the group. Since joining AK Holdings in 2018, he has contributed to establishing the holding company system as head of strategy, finance, and mergers and acquisitions teams. He holds a bachelor's degree in chemical engineering from Yonsei University and a master's degree in chemical engineering from KAIST, and has worked at global management consulting firms such as Russell Reynolds and Korn Ferry.
From 2022 until last year, Go served as CEO of AK Plaza, where he is credited with revitalizing the offline retail business, which had been stagnating due to the COVID-19 pandemic. In line with the 'Neighborhood Shopping Center (NSC)' strategy, he strengthened the merchandise mix (MD) tailored to local commercial districts. The Hongdae branch introduced 'kidult (kids + adult)' content MDs such as 'Animate,' a store selling K-pop and comic-related products. The Giheung branch targeted parents in their 30s and 40s by including MDs that satisfy family customers. As a result, the Hongdae branch reportedly saw a significant reduction in vacancy issues due to increased foot traffic.
Go appears to be focusing all efforts on managing the aftermath of the Jeju Air passenger plane disaster, which occurred shortly after his appointment. On the day of the accident, December 29 last year, he visited the site with Vice Chairman Chae and Jeju Air CEO Kim I-bae, along with about 250 Jeju Air executives and employees, bowing his head in apology.
AK Group's holding company, AK Holdings, is the largest shareholder of Jeju Air, holding 50.4% of its shares. Jeju Air is a low-cost carrier (LCC) established in 2005 as a joint venture between AK Group and Jeju Special Self-Governing Province. AK Holdings has taken on the role of a savior during Jeju Air's crises. During the COVID-19 pandemic, when Jeju Air recorded losses for four consecutive years, AK Holdings participated in a rights offering, raising 285 billion KRW.
Industry insiders evaluate that AK Group is facing its greatest crisis since its founding due to this disaster. AK Holdings also has subsidiaries including AK Corporation (45.1%), AK Chemical (60.3%), and AK Plaza (60.2%). Previously, AK Group faced a consumer boycott due to the humidifier disinfectant scandal, and now, as the Jeju Air disaster is pointed out to have stemmed from poor maintenance conditions and aircraft defects, social media platforms are sharing brand lists urging consumers to boycott products from AK Corporation, the cosmetics and household goods subsidiary.
Meanwhile, AK Corporation was indicted in 2019 on charges of selling the humidifier disinfectant product 'Humidifier Mate' from 2002 to 2011 without verifying its safety despite using toxic chemicals. The trial is ongoing. In the first trial in January 2021, the court acquitted the company, stating it was difficult to prove the harmfulness of the ingredient, but the second trial in January this year overturned that decision and found the company guilty. However, the Supreme Court recently remanded the case back to the Seoul High Court for further legal review.
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