Customs agents search Korean Air
The headquarters of Korean Air in western Seoul, which Korea Customs Service officials raided over allegations of tax evasion and other crimes, Wednesday. /Yonhap
By Kim Hyun-bin
Officials of Korea Customs Service searched the headquarters of Korean Air over allegations that the owner family violated the foreign exchange law.
It was the local authorities' fourth search of the flagship airline in the widening probe into the family for tax evasion and other violations.
The allegations surrounding Korean Air Chairman Cho Yang-ho's family accused them of smuggling luxury goods into the country without going through customs.
The chairman and his only son, Cho Won-tae, the president of Korean Air, will be summoned for questioning, said the customs agency.
The Cho family members can face maximum sentences of five years in prison and fines of up to 10 times the value of the goods they smuggled into the country.
Chairman Cho and his son have canceled their annual business trip to Los Angeles as it could be seen as an attempt to flee the country to avoid the ongoing probe.
“It was a scheduled business trip to attend an annual event, but they decided not to attend,” said an official from Korean Air.
Meanwhile, Hanjin Group said Korean Air Chairman Cho and his four siblings paid 19.2 billion won ($17.7 million) in inheritance tax.
The five had to pay inheritance tax following the death of Hanjin Group founder Cho Choong-hoon in 2002.
They have claimed to have found additional inherited assets overseas in April 2016.
To this end, the five had to readjust their inheritance tax payment plan in January this year. They said they would pay all the taxes in five years.
However, the move only comes after the prosecutors have widened their probe into Cho Yang-ho's alleged tax evasion.
Cho Hyun-min, the youngest daughter and a former executive of Korean Air, has been under investigation for allegedly assaulting an ad agency executive.
Cho's oldest daughter Cho Hyun-ah is infamous for the “nut rage” incident in 2014. Then, she forced the plane back to its gate at John F. Kennedy International Airport after throwing a tantrum over how her nuts were served.
After serving 10 month in prison, she returned to head KAL Hotel Network and as an executive of Grand Hyatt Incheon in March.
However, Cho Hyun-ah and Cho Hyun-min have been stripped of their company posts.