Hanjin Group has named Chairman Cho Yang-ho as CEO of its shipping service arm, the company said Tuesday. The country' 14th largest conglomerate said Cho, 65, will replace Choi Eun-young, his sister-in-law, in heading Hanjin Shipping, which has struggled with a liquidity shortage.

"anjin Shipping has overcome a number of crises in the past, and I believe we can also overcome the difficulties that we face if we move forward together,"he said in a statement.

"he company will be able to bounce back as a leading global market player if it normalizes the firm's management successfully. And I pledge full support for it to maximize synergy as a part of Hanjin Group's affiliate."

Hanjin Shipping is Korea's No. 1 shipping company, but it has been weighed down by a drop in global trade triggered by the 2007-2008 global financial crisis, as well as being hurt by inefficient ships and stiff overseas competition.

The company has been confronted with its worst managerial crisis since the 1980s with its top management, including Chairwoman Choi Eun-young, offering to step down and hand over control to Hanjin Group.

Korean Air, Hanjin Group's flagship company, offered to provide 250 billion won last year to Hanjin Shipping to stabilize its management. In the first half this year, Korean Air, the country's largest air carrier, will participate in the shipping service company's capital increase worth 400 billion won ($388.12 million).

The chief of the family owned conglomerate also said he will not receive a salary from Hanjin Shipping until it moves its finances into the black.

He added he will not cut any jobs at the firm, saying, "I urge all of the employees to remain where they are and carry out their respective jobs faithfully."

Hanjin Shipping recorded losses for the past three years, including 2013 when its operating loss reached 242 billion won, up from 109 billion won in 2012.

Hanjin Group said Choi will remain as the chairwoman of Hanjin Shipping Holdings, the parent company of Hanjin Shipping.

With the addition of Hanjin Shipping, Cho will serve as the CEO at five of the group's 48 affiliates, including Korean Air, the conglomerate said.