SEOUL, April 8 (NNN-BERNAMA-YONHAP) — Korean Air Lines Co. Chairman Cho Yang-ho has died of a chronic illness, the company said Monday, less than two weeks after he was removed from the national flag carrier’s board room, reported Yonhap news agency.
Cho, 70, died in the United States due to a lung disease. Korean Air Lines said it would set an emergency management system in motion to keep its operations going smoothly.
Cho also served as chairman of Hanjin Group, which has Korean Air, budget carrier Jin Air Co., Hanjin KAL and several other companies under its wing.
The death followed his ouster from the company’s board at a shareholder meeting last month amid a string of probes into him and his family members for using their superior positions to mistreat subordinates.
Cho’s removal from the board was the first time a founding family member of any South Korean conglomerate has been forced out of a key post through a vote by shareholders. Cho was on trial after he was indicted last year on multiple charges that include embezzlement and tax evasion.
In addition to his own problems, Cho’s wife and two daughters were under intense public criticism for their misbehavior.
In May last year, Cho’s wife, Lee Myung-hee was summoned by the police after she allegedly physically and verbally abused employees at Hanjin Group, the country’s 14th-biggest conglomerate by assets.
Cho’s eldest daughter, Hyun-ah, made international headlines in 2014 when she ordered the Korean Air plane she was aboard to return to its gate at a New York airport after losing her temper over the way she was served macadamia nuts.
She was sentenced to one year in prison for violating aviation law in late 2014 but was released in early 2015 when a high court suspended the sentence.
Hyun-ah’s younger sister, Hyun-min, took flak for allegedly throwing a cup of water during a business meeting with a partner firm. They both resigned from their senior positions at the airline due to the scandals.
Korean Air saw its image hit rock bottom with its performance sliding in 2018. It shifted to a net loss of 167.6 billion won (US$147.5 million) last year from a net profit of 801.9 billion won in 2017.
Cho is survived by two daughters and a son, Won-tae, who now serves as president of the national flag carrier.
Cho’s death may change the ownership structure of Hanjin Group and its affiliates, with his only son coming to the forefront in the group’s management.
The late chairman studied business administration at Inha University, which was established by Korean Air. He began his career at Korean Air in 1974 and served as chairman of the 2018 Winter Olympics bidding committee for PyeongChang and chairman of the 2018 PyeongChang Winter Olympics Organizing Committee.
As of 11.20 am, Korean Air shares jumped 3.29 per cent to 32,950 won, outperforming the broader KOSPI’s 0.20 per cent gain.
–NNN-BERNAMA-YONHAP
