Korean Air has unveiled a number of actions it is
taking designed to improve its financial position and increase
As part of the plans, Korean Air is selling its
land and building in the center of Seoul, Songhyeon-dong, and its
stakes in Wangsan Leisure Development Co. Ltd., a leisure company
that operates the Wangsan Marina resort in Incheon.
Korean Air purchased the Songhyeon-dong site from
Samsung Life Insurance in 2009 and planned to develop a cultural
complex. However, the land is located near Gyeongbok Palace, one
of the most valuable cultural assets in Korea, and Korean Air
faced multiple development challenges such as building height
restrictions and cultural asset preservation.
Meanwhile, Wangsan Leisure Development Co. Ltd. is
a leisure company operating the Wangsan Marina resort in Incheon
that was completed in 2016. It’s 100% owned by Korean Air.
However, the airline says that an additional large and long-term investment would be
required to create profitability.
Korean Air has also passed a resolution to
strengthen the independence of its board of directors and improve
The Outside Director Recommendation Committee will
be comprised of only outside directors to ensure the committee’s
independence. To this end, internal director Kee-Hong Woo resigned
his post and Dong-Jae Kim, an outside director, has been appointed
as a new committee member.
In addition, Korean Air’s board of directors
passed a resolution establishing a committee to improve the
transparency of its governance structure. The governance committee
will review and make recommendations about the airline’s major
business issues that may have a significant impact on shareholder
values and rights.
In November 2019, Korean Air took actions to
improve governance transparency, such as establishing a corporate
governance charter and appointing an independent outside director
as chairman of the Outside Director Recommendation Committee. The
governance committee has also been comprised of only outside
directors, and Dong-Jae Kim has been appointed as chairman of the
“Korean Air is determined to maximize shareholder
value. The resolutions that were passed reflect the company’s
strong will to improve its financial position and create a sound
and transparent governance structure,” said a Korean Air
representative. “We are fully committed to meeting these goals.”
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