[Herald Interview] Hanjin scion readies for big leap

Emily Cho, president and chief marketing officer of Hanjin Logistics Corporation, visited 11 countries in the first half of this year alone as she continued adding impetus to extending the global shipping network of the company her grandfather founded 79 years ago.

"I try to be present in meetings with our global clients, hoping to help foster long-term, solid partnerships with them," Cho told The Korea Herald in a recent interview at her office in central Seoul, a day before her business trip to Uzbekistan.

"As an executive from the group’s founding family, I always feel pressure. That’s why I work harder to show tangible results to shareholders."

The 41-year-old is the third-generation scion of the Korean aviation conglomerate Hanjin Group. She joined Hanjin Logistics, the group’s parent company, in 2020 after her father, former Chairman Cho Yang-ho, passed away in 2019. Her older brother, Walter Cho, took the helm at the group’s crown jewel Korean Air in the same year.

Since being promoted to president in 2022, she has played an active leadership role, along with CEO Noh Sam-sug.

Big global push

Hanjin Logistics, established in 1945, was the first Korean firm to enter the US logistics market in 1989. Currently, it boasts an extensive network of 37 locations across 19 countries, with plans to raise the number to 42 locations across 22 countries by the end of this year.

Cho’s renewed push for global expansion comes as the company struggles in a saturated market at home.

Many family-run conglomerates here own their logistics units and the companies can make ends meet by handling in-house orders only. Excluding conglomerates with heavier reliance on intra-sales, Hanjin competes head-on with Lotte for a distant No. 2 position, while CJ remains the dominant No. 1.

The crosstown rivalry is also being replicated globally. In recent years, Korean companies have been increasingly exporting products abroad, fueled by a surge in cross-border e-commerce transactions. While its rivals spend big to expand their presence abroad through large-scale mergers and acquisitions, Cho said Hanjin has sought "organic growth," a long-standing legacy learned from her father, the late charismatic Hanjin patriarch.

"My father valued solid organic growth for the company, even if it meant slower expansion. We intend to uphold this philosophy by exploring joint ventures with local partners rather than mega-sized deals," she said.

"Historically, Hanjin has always been about 'global' business; we have generated revenue from overseas since the beginning, and we intend to further expand alongside the growth of Korean companies investing abroad."

In the third quarter of this year, the company reported an earnings surprise, buoyed by improved operational efficiency and robust growth in overseas units.

The company posted 764.7 billion won (about $560 million) in sales, up 10.5 percent from a year ago. Operating profits also surged 16.3 percent to 39.2 billion won.

The company seems on track to hit 3 trillion won in sales this year. Its cumulative sales reached 2.2 trillion won as of the third quarter, about 12 percent of which came from global sales.

Rebranding for growth

Cho, who studied communications at the University of Southern California in the US, started her marketing career at the Seoul-based advertisement agency LG AD in 2005. She relocated to Korean Air in 2007 and served in diverse positions leading the marketing strategy at the nation's flag carrier and its aviation and hotel affiliates.

Under her leadership, Hanjin Logistics has also carried out diverse experiments that are unprecedented within the industry – launching a slew of trendy fashion and beauty platforms such as Hoottown, a Korean version of eBay facilitating overseas direct purchases of rare items, and Swoop, which supports K-fashion brands in going global.

"More recently, I find tech-savvy e-commerce platforms are promoting themselves as logistics specialists with fashionable brands. In the meantime, Hanjin, despite its decades-long legacy and extensive global network, has remained a traditional business-to-business company," she said.

Cho believes logistics is one of the most trend-sensitive businesses, as it feels the direct impact of geopolitical uncertainties and ever-evolving supply chains for key materials.

"We are always required to respond to such changes more promptly than others. Not to mention the fluctuating costs," she added.

According to the company, Hanjin’s fledgling platform business has seen a 13 percent year-on-year growth in sales. Cho noted these platforms will help enhance the company’s understanding of client needs, elevate its brand value and, more importantly, attract young talented people to the company and the industry overall.

Marking 80th anniversary

Cho stressed that 2025 will be a milestone year for both Hanjin Logistics and Hanjin Group as they mark the 80th anniversary of their establishment. The logistics unit prepares for its own special projects, including new branding, but she declined to share details.

"Competition is everywhere from global big names DHL and FedEx to soaring e-commerce platforms like Amazon and Coupang. Hanjin has to continue pushing hard to extend its global network while enhancing its brand value among our B2B clients and customers," she said.

"Hanjin Logistics is the backbone of Hanjin Group. Hanjin has thrived even in tough economic conditions, and I believe that growth continues."

In July, Cho visited the Marina di Carrara Port in Italy, where the company’s heavy cargo vessels, Hanjin Pioneer and Hanjin Leader, were docked. During the trip, she met with business partners there and boosted the morale of local employees.

"Seeing the vessels in person was one of the most emotional moments for me this year. In shipping, we typically deal with bulk carriers, so it’s rare to see our ships up close," she said. "When I spoke with the local staff, they mentioned feeling bored at times, so I sent them PlayStation gaming consoles as a small gift of appreciation."