The chairman of Hanjin Group, which operates Korean Air Lines Co, called on the newly inaugurated Lee Jae-myung administration to take urgent and concrete steps to protect South Korea’s aviation sector from looming U.S. tariff pressures.

Walter Cho’s comments come amid growing concerns that new trade measures by Washington could undermine the global aviation supply chain.

He spoke with Bloomberg on the sidelines of the 81st International Air Transport Association (IATA) meeting held in New Delhi, India, on June 2nd, 2025, where he stressed that potential tariffs on aircraft parts would have severe consequences for both exports and the cost of future aircraft procurement.

As Korea’s flag carrier, Korean Air Lines is a major buyer of aircraft from U.S.-based Boeing and Europe’s Airbus SE. The flagship carrier also exports high-value components, including fuselages, wing structures, and engine parts, to global manufacturers. Tariffs on the items would threaten exports while driving up import costs, impacting long-term operational budgets and investment planning.

Cho expressed particular concern over a recent investigation by the U.S. Department of Commerce into whether civilian aircraft and parts imports pose a national security risk. The inquiry has raised fears that zero-level import tariff protections, in place under the 1980 Treaty on Civil Aviation (TCA) with more than 30 countries, could be rolled back in favor of protectionist measures.

“Aviation has historically not been subject to tariffs, but if tariffs are imposed, it will cause great disruption to business activities,” Cho said, adding, “The aviation industry is exposed to new tariff threats, as the U.S. Department of Commerce recently investigated the national security implications of imports of civil aircraft, jet engines, and parts.”

“Due to the U.S.-China trade conflict, cargo from China to the United States is showing a fairly steep decline in demand,” and “passenger demand is relatively stable, but volatility may increase depending on the results of trade negotiations,” he added, explaining that “The recent months of power vacuum, coupled with global economic instability, have been a great burden on business activities,” and “Korea has an export-oriented economic structure, so a predictable trade environment is a must regardless of the presidential election results.”

Cho also began his third term as a member of the IATA Executive Committee at the IATA meeting. The IATA Executive Committee, comprised of CEOs of airlines around the world who are recognized for their expertise and experience, plays a key role in determining the policy direction of the international aviation industry.

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