The possibility of Hanjin Group conducting wide-ranging governance reform during the course of passing down shares held by the late Chairman Cho Yang-ho is low, and family control over the conglomerate is likely to continue, a report said Tuesday.

Yang Ji-hwan, an analyst at Daishin Investment and Securities, said in his report that the heir to the transport empire, Korean Air President Cho Won-tae, and his family can maintain their control over Hanjin Group by selling shares of other affiliates held by the chairman, who passed away in Los Angeles on Monday. 

Local reports and analysts have estimated the amount of inheritance tax to be levied on the chairman’s three children at some 170 billion to 200 billion won ($149 million-$175 million).

“By selling shares of other affiliates except for (late) Chairman Cho’s ownership in Hanjin KAL, (the family) can secure finances for inheritance tax,” Yang said, referring to Jeongsuk Enterprise, in which the family holds 48.27 percent of shares. Jeongsuk is an affiliate controlled by Hanjin KAL, along with Jin Air, Korean Air and Hanjin Group.

The current structure of Hanjin KAL controlling those major affiliates will remain, even if the group speeds up the succession process to his eldest son Won-tae, he added.

By Cho Chung-un (christory@heraldcorp.com)