Korean Air accelerating 3rd-generational succession
Walter Cho likely to inherit control of Korea’s largest carrier
By Lee Hyo-sik
Cho Yang-ho, Korean Air chairman
Walter Cho, vice president at Korean Air
Korean Air appears to be accelerating its third-generational succession as Walter Cho, executive vice president and the only son of Chairman Cho Yang-ho, is assuming an increasingly greater role in steering the country’s largest flagship carrier.
The younger Cho, 41, used to be in charge of the carrier’s passenger and cargo management and strategic planning. But in the latest reshuffle of the company’s senior management, Monday, he was given additional authority to oversee its catering, hotel and other businesses.
These operations were previously controlled by his older sister Heather, 43, who was forced to quit early last year, following the infamous “nut rage” incident that made headlines worldwide.
With his expanding profile, industry analysts say that he is on his way to take over management of Korean Air and other Hanjin Group affiliates, including Hanjin Shipping and Hanjin Express.
“It is safe to say that Walter Cho has become the heir-apparent,” said an analyst, who retired as a senior executive after spending more than 30 years at Korean Air. “Before the nut rage incident, Heather and Walter competed hard to inherit the carrier. But with Heather out of the picture, Walter will certainly become the next chairman.”
Cho earned a bachelor’s degree in management from Inha University and a master’s of business administration from the University of Southern California.
The analyst said he will become the company president in a year or two, replacing Chi Chang-hoon who just extended his three-year term for third time in the recent personnel reshuffle.
“I think Walter will soon become the president who can actually have a say in management. Chi, who has been serving in the post since 2010, has no authority and does only what he is told to do by Chairman Cho,” the analyst said. “The chairman is extremely choosy about people that he appoints to managerial posts. This is why Chi has been able to keep his job.”
He then said Heather could return to management as early as next year. “If Heather comes back to the company, the chairman may spin off the carrier’s catering and other hospitality-related operations and let her manage the new entity. I think it is pretty feasible.”
Chairman Cho’s youngest daughter, Emily, who is a senior vice president in charge of Korean Air’s marketing and communications, is widely expected to continue in her current post. She is also overseeing marketing and communications at Jin Air, which has been grappling with a series of safety lapses in recent months.
Early last year, Heather was sentenced to one year in prison by a lower court after she had been found guilty of committing acts of violence that disturbed flight safety, coercion and interfering with business.
But the high court released her from jail after sentencing her to 10 months in prison suspended for two years. But prosecutors have appealed to the Supreme Court.
Heather is also facing a civil lawsuit in the United States, filed by former Korean Air flight attendants who argued they were verbally and physically abused by her. They are demanding compensation for the abuse from her, which they claim caused serious physical and mental harm.