Jo Jajin, CEO, officially launches the executive director system
On March 18th, Hanatour held an extraordinary shareholders’ meeting and approved the proposed amendment to the articles of association to introduce the executive director system. Jo Jajin, the newly appointed CEO, delivered a strategic presentation at the company’s headquarters in Seoul on the same day. CEO Jo graduated from the Department of Economics at Seoul National University and has accumulated approximately 35 years of experience in global consulting firms and the financial and credit card industries.
Significance of the domestic travel industry’s first implementation of the “Chief Execution Officer” system
This reorganization is also noteworthy for being the first instance of the “executive director system” in the domestic tourism industry. The executive director system is a governance structure that separates decision-making and operational execution within a company. The board of directors focuses on strategy and oversight, while the executive directors are responsible for the actual operation of the company.
In a typical Korean company, the CEO is responsible for both management and supervision, and bears full responsibility. However, in an executive director system, since supervision and operations are separated, there is an advantage in that risks and errors can be minimized.
Jo Jau-jin’s credentials and management philosophy
Mr. Jo has worked in the fields of strategy, marketing, and management for approximately 35 years. He previously worked at A.T. Kearney and Monitor Group, and served as the CEO of Oliver Wyman Seoul Office. He also held the positions of Head of Strategic Planning and Head of Marketing at Hyundai Card, Hyundai Capital, and Hyundai Commercial.
During his tenure as CEO of Lotte Card, he strengthened the company’s profitability and growth by restructuring its asset portfolio and innovating its cost structure. He is also credited with driving the “Digi-LOCA” data-driven digital strategy, which is seen as enhancing the company’s digital competitiveness .
The CEO stated, “Our first question should not be ‘where to go,’ but rather ‘for whom and for what purpose is this trip?'” He added, “We will strive to become a company that deeply understands its customers, going beyond simply being the company that knows the most about travel destinations.”
Hanatour Chapter 2: Three Pillars of Growth in Our Strategy
Hanatour plans to pursue a mid- to long-term strategy with three major growth pillars: expanding the premium travel market, fostering inbound business, and driving digital innovation based on artificial intelligence (AI).
In the premium travel market, the focus is on enhancing differentiated experiences tailored to customer preferences and travel purposes, and expanding customer experiences to encompass the entire process, from before to after the trip. In the inbound business, K-culture is being leveraged as a new growth opportunity, and differentiated inbound travel services are planned to be expanded, primarily in Japan and Southeast Asia.
We are building a business structure that enhances operational efficiency through AI and data-driven digital innovation, and strengthens the competitiveness of customer service, product planning, and overall marketing, thereby securing both growth and profitability.
Organizational restructuring and enhancement of management efficiency
Hanatour is expected to lead the execution of medium- and long-term strategies within the newly implemented executive director system, leveraging its experience in designing customer experiences based on data and building premium brands. The CEO, who was recruited from outside the travel industry, will lead the overall strategy and changes, while the core functions of the travel agency, including supply, sales, and product planning, will be executed by the heads of each business division.
According to the amendment of the articles of association, the board of directors will be responsible for major decision-making and management supervision, while the executive director will be in charge of operational management. This measure aims to strengthen decision-making speed and responsible management by separating the roles of the board of directors and the management team.
Strategic choices for responding to changes in the travel industry
This decision goes beyond a simple change in management; it is a proactive response to the rapidly changing travel industry environment since the COVID-19 pandemic, and aims to fully promote “Hana Tour Chapter 2,” Hana Tour’s future growth strategy. Hana Tour is evaluating this as a growth project that reconnects and develops Hana Tour’s unique competitiveness, accumulated over 30 years, with a focus on customers, thereby raising its future competitiveness by one level.
Frequently Asked Questions (FAQ)
Q. What are the main features of the executive director system at Hanatour?
A. Hanatour plans to introduce an executive director system to strengthen the board of directors’ strategic decision-making and supervisory functions, and to clearly define the responsibilities and authority of the management team. Unlike the existing CEO system, this structure separates decision-making (supervision) from operational execution (management).
Q. What is the previous experience of CEO Jo Ja-jin?
A. CEO Jo previously served as the Head of the Strategic Finance Division and the Head of the Marketing Division at Hyundai Card, Hyundai Capital, and Hyundai Commercial, and then held the positions of CEO of Hyundai Capital America and CEO of Lotte Card. He is a professional executive with over 30 years of experience in the finance and strategy fields.
Q. What is the core strategy of Hana Tour Chapter 2?
A. Hana Tour plans to pursue a mid- to long-term strategy with three major growth pillars: expanding the premium travel market, fostering inbound business, and driving digital innovation based on artificial intelligence (AI). The company aims to strengthen customer-centric, differentiated experiences and promote digital innovation based on data.
Q. How does the introduction of the executive director system affect the speed of decision-making?
A. In an executive director system, since supervision and operation are separated, it is possible to minimize risks and errors. Furthermore, by granting clear authority to the executive directors, the speed of execution can be increased, and responsible management can be strengthened.
Q. What is the background for this change in management?
A. The company stated that this personnel change is a decision made to actively promote “Hana Tour Chapter 2″, which is the company’s medium- and long-term growth strategy. This is a strategic choice to proactively respond to the rapidly changing travel industry environment and to establish a new foundation for growth.
Q. What are the specific plans for expanding the inbound business?
A. In the inbound business, we aim to expand differentiated inbound travel services, focusing on Japan and Southeast Asia, by leveraging the spread of K-culture as a new growth opportunity, and we plan to foster Hana Tour as the leading platform for travel to South Korea.
