Gov't in hot seat over 'water rage' fallout

By Lee Kyung-min

The government has come under heavy criticism for failing to oversee business affairs involving Hanjin Group's chairman, the youngest daughter of which reignited a controversy over an “anger management issue,” a “shameful” incident reminiscent of one her older sister triggered four years ago.

Korean Air senior executive Cho Hyun-min, the youngest daughter of the company chairman Cho Yang-ho, is under investigation over allegations she splashed water into the face of an ad agency official _ among many other forms of abuse _ because she was “enraged” at his work performance. This incident is all too similar to the “nut rage” case of her older sister Cho Hyun-ah that sparked nationwide outrage over the rich and powerful abusing their positions. Hanjin is the largest shareholder of the full-service airline.

An internal inspection is underway at the Ministry of Land, Infrastructure and Transport over why it failed to disqualify Cho Hyun-min, a U.S. citizen who identifies herself as Emily Lee Cho, from retaining a board of directors post at Jin Air, the group's low-cost carrier, for six years. Under the related law, a foreign national cannot hold such a post on the board of a domestic or international logistics company.

Heavy punishment is expected for a number of ministry officials who had been responsible for paper reviews before granting the company's request for changes to the board of directors on three occasions between 2010 and 2016.

The written request submitted on all three occasions, according to the ministry, stated her name as Emily Lee Cho and her nationality as American, a clear irregularity supervising officials should have detected. Jin Air said it was not aware of the related law, increasing criticism on the ministry for failing to observe proper enforcement of the law.

The internal investigation could be expanded if referred to police or the prosecution to determine whether the conglomerate and the ministry condoned such an illegality knowingly and deliberately based on mutual understanding and possible quid pro quo.

The move to uncover many similar activities involving the Cho family is the latest of belated efforts to rectify wrongdoings occurring under previous administrations.

Korea Customs Service started an investigation into allegations the two sisters used the airline to smuggle luxury goods, furniture and other personal items by bypassing the necessary customs clearance protocols.

A team from the agency searched the homes of the two sisters and their brother as well as company headquarters at Incheon International Airport, Saturday, to identify whether they paid the due amount of taxes on furniture, personal clothing or home appliances purchased overseas. The officials said they will match overseas financial transaction records with the items.

Meanwhile, a police investigation is ongoing into Cho Hyun-min over suspected evidence-tampering in the “water rage” case.

Police searched offices belonging to her and the marketing department to confiscate four cellphones including two used by Cho and two others used by company executives who attended the meeting during which the alleged abuse occurred.

The officials looked into whether she made any efforts to talk the witnesses out of making statements against her by making threats or other offers.

Some witnesses said she threw an empty glass at the official in which case she could be prosecuted for aggravated assault. Cho has denied the allegation, claiming she did not throw the glass.