Korean Air CEO quits as Jin Air CEO

Cho Yang-ho

By Kim Hyun-bin

Korean Air Chairman Cho Yang-ho stepped down as CEO of Jin Air, Thursday, amid mounting allegations that his family members have abused their power.

“The CEO change was made to strengthen the responsibility and management structure of Jin Air,” said the budget carrier in a statement. ”We have newly appointed Kwon Hyuk-min as the new CEO, after the resignation of Cho Yang-ho, but Cho will remain as a director.”

The move comes after Cho Hyun-min, the chairman's second daughter and former Korean Air marketing executive, became embroiled in allegations that she threw water into the face of an ad agency executive during a business meeting in March. Police questioned her about the incident last week.

This incident has spawned widespread fallout and one of them is her previous career as a board member of Jin Air.

Cho Hyun-min ― who has U.S. citizenship ― served as a board member of the budget carrier for six years, which is a violation of the Transport Law barring a non-Korean citizen from assuming such a post. This has put Jin Air at risk of losing its business license.

Cho Yang-ho's resignation is the latest in a series of moves to try to ease mounting public outrage over allegations of misconduct.

In the wake of the alleged tantrum, the Korean Air chief removed his two daughters Cho Hyun-ah and Cho Hyun-min from management. The former is notorious for the “nut rage” incident that delayed an international flight at New York's John F. Kennedy International Airport over a packet of macadamia nuts.