Korean Air heiresses to resign as smuggle probe widens
SeoUL: The Korean Air Lines has announced that the two daughters of its chairman will resign from their executive positions amid mounting public criticism over the women’s behaviour and the family’s smuggling allegations.
An official at the Korea Customs Service, meanwhile, confirmed that authorities yesterday raided the airline’s headquarters in Seoul seeking evidence on alleged smuggling and tariff evasion.
Chairman Cho Yang- ho announced the resignation of his daughter Hyun-ah, who returned to leadership last month after a fouryear hiatus following a “nut rage” scandal, and her younger sister Hyun-min, who is under investigation for allegedly hurling a cup of water at a business meeting.
“We are deeply sorry for upsetting the public and Korean Air employees with my family’s problems,” Cho said in a statement.
“Everything is my fault. I apologise to the public.”
Media reports also cited anonymous tips from airline employees that the Cho family smuggled foreign luxury goods into South Korea by disguising them as corporate assets.
Korean Air spokesman said the family is fully cooperating with the investigation.
The Cho family’s troubles angered many South Koreans who resent abuses of power by elite families connected to many of the country’s biggest publicly listed businesses.
Such family-run conglomerates dominate the country’s economy.
The families and their companies are facing growing pressure for stricter oversight and more transparency in corporate governance. — AP