Korea Aerospace Industries (KAI) said on the 29th that it carried out a reorganization. It is the first overhaul since President Kim Jong-chul took office, and KAI said it aims to strengthen a performance-based management system by reducing overlapping functions and decentralizing decision-making authority.
Through this overhaul, KAI will change its current structure of five divisions, one institute, four headquarters, three centers, and five task forces (TF) to three divisions, one institute, and 13 headquarters. The reorganization reflects the results of an organizational diagnosis by an external specialized institution and feedback from employees. The changes take effect on the 1st of next month.
KAI has faced criticism that responsibilities and efficiency were weakened because functions were dispersed and overlapped across multiple organizations. In response, it will integrate its business organization into three functional divisions and one institute, and decentralize and delegate decision-making authority, which had been concentrated in the CEO, to each division and headquarters. The aim is to clarify responsibility and performance management by organization.
KAI cited strengthening performance in existing core businesses and expanding its portfolio as the key to this overhaul. KAI said, "To nurture cash-cow businesses and secure future growth engines, we focused on reinforcing capabilities in six areas: linking business management and exports, developing future combat systems, space and satellite development, unmanned aerial vehicle business management, software-centered system development, and commercial businesses."
Under the reorganization, the development division will be led by Executive Vice President Cha Jae-byung; production and procurement by Executive Vice President Song Ho-chul; and exports and business management by Senior Executive Managing Director Kim Yong-min. The head of the Future Convergence Technology Institute will be Executive Vice President Kim Ji-hong.