Cho Won-tae, chief of Korean Air Lines and chairman of Hanjin KAL. Photo: Bloomberg
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https://scmp.com/news/asia/east-asia/article/3048519/nut-rage-heiress-cho-hyun-ah-plans-oust-brother-korean-air-ceo East Asia
‘Nut rage’ heiress Cho Hyun-ah forms alliance to oust brother as Korean Air CEO
- Cho Hyun-ah has teamed up with two shareholders of the airline’s parent company, Hanjin KAL, ahead of a shareholders meeting
- The Cho family has been engaged in a bitter feud over the management of their business since their father died
Cho Hyun-ah, sister of Korean Air boss Cho Won-tae. Photo: AP
Cho Hyun-ah, a former Korean Air executive whose 2014 “nut rage” incident made global headlines, has joined forces with key shareholders of the airline’s parent company in a bid to oust her brother, citing a “crisis” in management.
The move comes amid a bitter family feud between the Korean Air CEO and group chairman Cho Won-tae and his sister ahead of a shareholders meeting in March.
Cho Hyun-ah, activist fund KCGI, and Bando Engineering & Construction – shareholders in Korean Air’s parent company Hanjin KAL – said in a joint statement that the carrier and its parent group’s “current management situation is a serious crisis and it cannot be improved by the current management”.
Professional managers must be introduced, the statement said.
“To this end, we agreed to actively cooperate in activities for the growth and development of Hanjin Group, including exercising voting rights and putting forth proposals at the upcoming Hanjin KAL shareholders’ meeting,” the statement said.
Cho Hyun-ah, also known as Heather Cho, has accused her brother of disobeying their late father’s will for the family to work together to manage the group.
The recent public feud between the Cho siblings had generated speculation that Cho Hyun-ah, 45, may attempt to unseat her 44-year-old brother Cho Won-tae, who was appointed chairman of Hanjin KAL after their father died.
Cho Won-tae’s seat on the board of Hanjin KAL, which owns about a 30 per cent stake in Korean Air, is set to renewed by shareholder vote in March as a three-year term expires. Both siblings have about 6.5 per cent stakes respectively in Hanjin KAL.
South Korean media have reported that Cho Won-tae, also known as Walter Cho, has consulted Delta Air Lines, which owns a 10 per cent stake in Hanjin KAL.
KCGI, Bando and Cho Hyun-ah together have about a 32 per cent stake in Hanjin KAL.
Korean Air did not have an immediate comment.