Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
Sibling feud erupts over control of Korean Air
Hanjin Group Chairman Cho Won-tae, left, and former Korean Air Executive Vice President Cho Hyun-ah / Korea Times file
By Kwak Yeon-soo
By Kwak Yeon-soo
Cho Hyun-ah, former Korean Air executive vice president, accused her younger brother Monday of not leading Hanjin Group in accordance with their father's dying injunctions, signaling a sibling feud over control of the logistics-centered conglomerate.
Cho, who is notorious for her 2014 “nut rage” incident, released a statement via her legal representative, claiming that Hanjin Group Chairman Cho Won-tae is not following their father's instructions regarding group management.
“Our father wanted the family to run the business together, but Hanjin Group is currently neglecting his last words,” Hyun-ah said through her legal representative.
Former Hanjin Group Chairman Cho Yang-ho died of a chronic lung disease in Los Angeles in April at the age of 70.
Their feud surfaced in May when the board of Hanjin KAL, the group's holding company, belatedly named Won-tae as the group's new chairman reorganized by the Fair Trade Act. Hyun-ah and her sister Hyun-min allegedly disagreed with their brother.
The three seemed to have reached a consensus when Won-tae told reporters that the three have ironed out their differences and agreed to work together. However, Hyun-ah has not yet returned to the family-run business.
Hyun-ah lost her post as Korean Air executive vice president when she ordered a plane to return to its gate at a New York airport after she was served macadamia nuts in 2014.
Then, she was sentenced to 10 months in prison on charges of violating aviation safety, coercion and abuse of power, although she was freed after an appeals court suspended her prison term.
In 2018, she was appointed to president of KAL Hotel Network, but stepped down after less than a month due to public criticism.
Despite her continuous efforts to return to her role as group heiress, Hanjin KAL cut short of the possibility of her return to the post.
“All management decisions were announced without any prior consultation with the family. Hanjin KAL didn't consult with Hyun-ah regarding her possible return to the family-run business,” Hyun-ah's legal representative said.
Regarding the controversy, Korean Air announced a counterstatement, saying the company has been striving to meet market expectations by enhancing corporate value and rebuilding shareholders' trust.
“The company's management should be exercised in accordance with relevant corporate laws and through shareholders' and board meetings,” a Korean Air official said.
“We sincerely hope this controversy does not undermine the company's corporate value, as we stand in the critical moment of transformation.”
The Cho family recently completed the process of inheriting the late former chairman's stocks in Hanjin KAL.
Won-tae's stake in Hanjin KAL rose to 6.52 percent from 2.34 percent. Hyun-ah holds 6.49 percent in Hanjin KAL, and Hyun-min, the youngest child of Cho Yang-ho, has 6.47 percent.
With the latest news, Hanjin KAL ended at 46,200 won, up 20 percent from the previous session, and Korean Air closed at 29,100 won, also up 4.68 percent during the same period.
Hanjin Group has Hanjin KAL, Korean Air, Jin Air and several other companies under its wing.