Hanjin Group Sets 2005 Sales Goal at 15.41 Tln Won
- Striving toward becoming a leading global carrier and logistic group

Korean Air (KAL) has set the year 2005 as a take-off year toward becoming a leading global carrier and logistics group.
KAL Chairman Cho Yang-ho said in his New Years speech that his airline would do its utmost to upgrade the value for clients by offering customer-oriented services, and focusing on field management. On top of that, he said, KAL will work toward setting principles and standards corresponding to global standards while ensuring rational and transparent management honoring the process.
KAL has unveiled a 10-10-10 concept calling for the raising of sales by 10 percent, reducing costs by 10 percent and upgrading competitiveness by 10 percent as part of its efforts to ensure value-oriented management.
On top of maximizing profits, KAL Chairman Cho said his company would restructure its business structure into a future-oriented one, aimed at exploring new business arenas and focusing on its core capabilities.
Last year witnessed a host of internal and external difficulties, including tumultuous fluctuations of oil prices and the appreciation of the Korean currency, and chances are high during this year that the internal and external uncertainties would linger on, the chairman said. He urged his staff to make a difference to the way they serve passengers, saying that a corporation taking a lead and adapting to new management conditions could evolves, but if it does not, the corporation would be left behind.
Meanwhile, the Hanjin Group has finalized the 2005 business performance goal calling for 15.41 trillion won in sales, a 3.4 percent increase over 2004, and 1,482 billion won in operating profits, a 20 percent rise.
The conglomerate of airline and shipping subsidiaries said on Dec. 30 that it will put more energy into securing momentum for establishing itself as a global logistics leader on the occasion of marking the year 2005 with the 60th anniversary of its founding.
Hanjin projected its investments for 2005 at 1,158 billion won, a similar level for 2004. The projected investment amount breaks down to 955 billion win in airline affiliates and 183 billion won in shipping subsidiaries.
Specifically speaking, the largest portion of the projected 2005 investments will go to the transport carrier sector with 743 billion won, followed by 296 billion won in facilities and equipment and 119 trillion won in such ordinary investments as the IT sector.
The business group plans to make efforts to establish its position as a leading global logistics group by focusing on securing a network of the Chinese market.
Hanjin Heavy Industries and Construction Co. has tentatively set its 2005 sales target at 2.1 trillion won and a projected 40 billion won in net income. nw