A poignant reminder of the need to manage any business, family owned or not, with the right people in the right position to make changes as the world around them changes too.
Hanjin is in an incredibly tough sector and it has been well documented that shipping lines are making losses and need to adjust accordingly and Hanjin is now on the brink where the next generation have not managed to keep control of the empire created buy their predecessors.
South Korea’s top ocean shipping company, Hanjin Shipping Co., is in bankruptcy proceedings following years of losses, as its family-dominated controlling conglomerate struggles to adapt to an era of slowing growth. Founder Cho Choong Hoon started a trucking business in 1945 and made a fortune hauling supplies for U.S. forces during the Vietnam War. The conglomerate, or chaebol, he built helped drive the country’s ascent as a major economy, Asia’s fourth-largest. Among other businesses, it owns South Korea’s biggest airline, Korean Air Lines. To many South Koreans, Hanjin’s woes are typical of the difficulties chaebol are facing as offspring of the founding generation fumble in their attempts to keep control of their fathers’ and grandfathers’ business empires.