Prosecutors question Korean Air chief for tax evasion
Cho Yang-ho, the chairman of Korean Air, appears at the Seoul Southern District Prosecutors Office for questioning Thursday. The Korea TImes photo by Choi Won-suk
By Kim Hyun-bin
Prosecutors grilled Cho Yang-ho, the chairman of Korean Air, for alleged tax evasion, breach of trust and embezzlement, Thursday.
Cho appeared at the Seoul Southern District Prosecutors Office at around 9:30 a.m.
“I am sorry. I will fully cooperate with the investigation,” he told reporters
Cho and his sisters are accused of evading over 50 billion won ($44.7 million) in taxes on their inheritance of overseas assets from their father Cho Choong-hoon, the founder of Hanjin Group.
Prosecutors also suspect Cho embezzled over 20 billion won, incurring losses for the company, and unfairly awarded contracts to companies controlled by his family members.
Cho's wife and children are also under investigation for allegations of assault, smuggling luxury goods and illegally hiring Filipina housekeepers.
Prosecutors have been looking into suspicions of the illegal use of company expenses. The company allegedly covered legal costs for Cho Hyun-ah, the eldest daughter of Cho Yang-ho, during the infamous “nut rage” incident.
In 2014, Cho forced a plane back to its gate at John F. Kennedy International Airport after throwing a tantrum over how nuts were served to her in the first-class cabin.
Park Chang-jin, the chief flight attendant during the infamous “nut rage” incident, and other Korean Air employees stood in front of the prosecution building demanding a strict and fair investigation.
“A normal citizen would have been punished but it's a shame the Cho family cases have become covered up,” Park said. “We demand a fair investigation, and Cho needs to be punished.”
Meanwhile, there is growing speculation that the transport ministry is inching toward stripping Jin Air of its operating license for violating a transport law that prevents foreign nationals from serving on its board of directors.
The ministry said it has not yet made a final decision, but plans to announce one soon.
The biggest problem, among others, is how to deal with 1,900 employees and minority shareholders of the low-cost carrier, owned by Korean Air. Jin Air is the country's second-largest budget airline.
An internal inspection has been ongoing in the ministry after it was revealed Korean Air heiress Cho Hyun-min, a U.S. citizen born in Hawaii, had served on its board between 2010 and 2016.
The maximum penalty is cancellation of the airline's license.
The investigation began following the public fury over Cho and her family's abuses of power.
The scandal started with an allegation Cho had thrown water in an advertising executive's face during a business meeting, unveiling a series of accusations of abuse of power by the owner family.