April 26, 2024
Industrials
Cho Hyun-min can’t take over Korean Air: ministry
Cho, who is a US citizen, holds just a 2.3 percent stake in Hanjin KAL, the holding company of Hanjin Group, which fully owns Korean Air. It was through this tiny stake that she held lofty posts at the flagship airliner and low-cost carrier Jin Air.
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Like her father Hanjin Group Chairman Cho Yang-ho, she would need to expand her stake in Hanjin KAL to acquire control of the airline. Not only that, but Cho also won't be able to take over any other of Hanjin affiliates since in order to do this, she would still have to get more shares of Korean Air.
Current laws don’t allow foreigners to own more than 50 percent stake in a Korea-registered airline. They are also kept from becoming registered board directors. Airlines violating these laws could have their license revoked, officials noted.
“It does depend on exactly how much stake Cho has in Korean Air and Jin Air, and how much she was involved in the management,” said Joo Hyun-jong, an official of the ministry’s airline policy department.
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Cho Hyun-min |
The ministry is reportedly consulting with legal services for the details.
If Cho forgoes her US citizenship, it would be a different issue. However, this also seems unlikely since local laws say that anyone who has caused harm to the nation or society, or is guilty of irreproachable conduct, cannot regain their Korean citizenship. If the police find her in violation of local laws, she can’t attain a passport.
Cho is one of the Hanjin chairman’s three kids who recently became a “public enemy” for mistreating an ad agency contracted by Korean Air. Her siblings include Cho Hyun-ah who triggered a nationwide uproar in 2014 for making an international flight turn back to the gate for failing to serve nuts the way she wanted in the first class cabin.
By Park Il-han (Herald Business) and Bryan Hong (The Investor)
