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Daughters of Korean Air chief to step down amid abuse of power criticism

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ArirangNews

Arirang News

Turning now to the big news out of Korea's national carrier...
The two sisters accused of abusing Korean Air employees have been removed from their executive roles in the family-run corporate empire.
Their removal is effective immediately... as the public backlash against the airline shows little sign of slowing down.
Lee Seung-jae reports.
Cho Yang-ho, chairman and CEO of Korean Air, apologized on Sunday over the growing abuse of power allegations centered on his daughters, Cho Hyun-min and Cho Hyun-ah,... adding that the two sisters will be stripped of all their responsibilities at the company.
The chairman's youngest daughter and now-former senior vice president, Cho Hyun-min, faces a probe over accusations she threw water in the face of an ad agency manager during a meeting last month.
She's the younger sister of Cho Hyun-ah, who made headlines around the world four years ago,... over the so-called 'nut rage' incident, which sparked a nationwide crackdown on abuse of power at local corporations.
The chairman's decision to remove his own daughters comes after customs officials searched their homes amid suspicions they brought luxury goods into the country using Korean Air to avoid paying duties.
According to an unnamed official,... authorities have secured evidence in the form of photos that some goods were brought into the country duty-free without being reported to customs.
Once a full list of goods, not reported to customs is compiled,... authorities will decide whether to question the family, to see if they engaged in unlawful actions.
Adding to the long list of allegations,... the chairman has also been accused of ordering the soundproofing of his office.
Industry insiders say the 'soundproofing' allegations could be interpreted as Cho and the company avoiding taking steps to change its corporate culture, in which bullying and some degree of verbal abuse may have been tolerated.
They added that the renovations could be seen as a way to prevent leaks of such acts.
With the two daughters out,... the company will appoint Suk Tai-soo, the CEO of Korean Air Lines Hotel Network,... as its new vice chairman.
Korean Air hopes the move will help it move past the scandals and start to rebuild its tarnished reputation.
Lee Seung-jae, Arirang News.

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