4/22/2018

Korean Air executives lose their jobs



SEOUL, South Korea — Two sisters accused of abusing Korean Air employees will be removed from management positions in their family-run corporate empire, the company announced on Sunday, four years after one of them became notorious for an episode known as ´nut rage´.
The executives, Cho Hyun-ah, 43, (photo) and Cho Hyun-min, 35, have become lightning rods for South Koreans who say that leaders of the family-run conglomerates known as chaebol, which dominate the country’s economy, often act as if they are above the law.
Cho Hyun-ah became infamous in 2014 when, as a Korean Air vice president, she flew into a rage after she was served macadamia nuts in an unopened package, rather than on a plate, in first class. She threw documents and insults at members of the flight crew, and she ordered flight attendants to kneel and beg for forgiveness.
Then she ordered the Korean Air plane pilot to go back to Kennedy International Airport in New York where she fired the chief flight attendant.
She was later accused of violating airline safety laws and spent several months in prison, though she recently made a quiet return to the Hanjin conglomerate for which her father, Cho Yang-ho, is chairman. She is now managing a hotel business that he controls.
This month, the police began investigating accusations of physical abuse against her younger sister, Cho Hyun-min, a Korean Air marketing executive. She was accused of insulting an advertising executive and hurling water in his face during a business meeting.
Ms. Cho said she threw the water on the floor, not at the official’s face, but nevertheless apologized for what she called foolish and reckless behavior. 
The family has become so unpopular that South Koreans want national authorities to ban Korean Air from using “Korean” in its name.
Mr. Cho, the company chairman, apologized in a statement on Sunday: “I am deeply sorry that problems connected to my family have worried the people and employees of Korean Air,” he said. “As chairman of Korean Air and as the head of my family, I feel crushed by the immature behavior of my daughters. They will be immediately removed from management'".
 Mr. Cho also said he will introduce professional managers to top company posts. His son, Cho Won-tae, will remain as president of Korean Air.
South Korea’s wealthy families are entangled in several corruption scandals.  But the chaebol will continue to endure, critics say, because they are crucial to the country’s economy.


From The New York Times (edited)