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SKOREA-KAL-ECONOMY
Scandal-hit Korean Air chief forced off board by shareholders
SEOUL, March 27, 2019 (BSS/AFP) – The head of South Korea’s flag carrier Korean Air —
whose family have been embroiled in multiple scandals including one involving a “nut
rage” tantrum — lost his board seat after shareholders voted against extending his
term as director, the airline said Wednesday.
Cho Yang-ho, who is currently on trial for corruption, failed to secure a required
two-thirds majority, becoming the first controlling shareholder of a South Korean
conglomerate to be forced off the board.
The super-wealthy owners of chaebols — the sprawling conglomerates that dominate the
world’s 11th-largest economy — are no strangers to controversy, but a string of
high-profile scandals have vaulted the Cho family to notoriety in South Korea, even
sparking protests by their employees.
The 70-year-old tycoon is the chairman of the Hanjin Group, which used to own the
now-bankrupt Hanjin Shipping line.
Cho controls around 30 percent of Korean Air through its parent company Hanjin Kal.
But the National Pension Service, the airline’s second biggest shareholder, had said
Tuesday it will oppose Cho’s re-election, citing his records of “undermining corporate
value and infringing upon shareholder rights”.
“It is correct that he has lost his seat as the director of the board,” a Korean Air
spokeswoman told AFP.
The Cho family has been under scrutiny in recent years after being embroiled in
multiple criminal probes over charges ranging from assault, embezzlement and smuggling
luxury goods.
Cho is on trial for embezzling more than 20 billion won ($18 million) and unfairly
awarding contracts to companies controlled by his family members.
His two daughters, who held management positions at Korean Air, previously became
viral sensations for temper tantrums dubbed the “nut rage” and “water rage” scandals,
forcing Cho to issue a public apology and remove them from their posts.
The elder, Cho Hyun-ah, made global headlines in 2014 for kicking a cabin crew chief
off a Korean Air plane after she was served macadamia nuts in a bag rather than a
bowl. She later served a short prison sentence.
Last year, her younger sister Cho Hyun-min was accused of throwing a drink into an
advertising agency manager’s face in a fit of rage during a business meeting. She was
not indicted as the victim did not want to press charges.
Their mother, Lee Myung-hee, has been questioned by police several times in
connection with allegations of assault against her employees including cursing,
kicking, slapping and even throwing a pair of scissors.
Cho himself received a suspended jail sentence for tax evasion in 2000 and is
awaiting a separate trial for using 30 billion won of company funds to renovate his
house.
BSS/AFP/AU/08:55 hrs