Cho’s Board Exit: A Chaebol Shake‑Up in South Korea
Bigger than a stock‑price spike, the vote at Korean Air’s annual meeting saw the big boss Cho Yang‑ho lose his seat on the board, despite only 64.1 % of shareholders backing him—well below the ⅔ threshold needed for a re‑appointment. The move ended a 27‑year stint and hit the Korean Air share price, which leapt up to 5.6 % in the morning. The parent company Hanjin Kal jumped even higher, rising 9.4 % before smoothing out.
Why the Vote Was a Wake‑Up Call
Shareholders were ringing the alarm after a string of drama that started with a “nut‑rage” episode back in 2014, when Cho’s eldest daughter, Heather, rosined all of first‑class passengers after the airline swapped nut bags and was angry enough to order a plane to return to the gate in New York.
Fast forward a few years: Emily Cho, the youngest daughter, was caught flinging a drink at a business meeting in 2018. Both girls left their senior jobs at the airline in the after‑shocks. “The Cho family ran the airline like a monarchy, and that brought the company to a financial dump,” said activist‑turned‑lawmaker Chae Yi‑bai at the meeting.
Board Vote: 64.1 % Might as Well Be a Close Call
Even though Cho did not attend and was trying to stay far from the spotlight abroad, the National Pension Service—Korean Air’s second‑biggest shareholder—filed a fight to remove him. Proxy adviser ISS also nudged investors to vote against his re‑appointment, citing “material failures of fiduciary duty.” After all, Cho is going through legal wrangles on charges of breach of trust and embezzlement (which he’s denied).
The “Real Power” Behind the Scenes
He may have lost a board seat, but Cho is still the chairman and CEO—and the king of the throne, thanks to Hanjin Kal. He still has the levers to steer the airline’s day‑to‑day operations, and his son Cho Won‑tae (the next‑in‑line “chaebol‑throne sitter”) sits on the board and runs Korean Air as president.
“The flight attendant who exposed the nut incident can’t be blind to how the board’s future votes will swerve in Cho’s favor,” says Park Chang‑jin, who heckled the boardroom. “A junior board member’s vote essentially opens the door for the elder Cho to keep pulling the reins.”
South Korea’s Corporate Culture: Can it Change?
The big board shake‑up might be the first time a founding family heir gets kicked off a board in South Korea’s corporate giants, a sign of growing activist pressure. But many still question whether “norms” like family dominance at chaebol companies can truly shift. “Honestly, it feels almost impossible to change the chaebol culture when family members are the puppet masters,” Park remarks, standing with dozens of protesters outside the headquarters.
Bottom Line
Cho’s exit from the board is a historic moment for the country’s biggest airline. Though he’s still pulling the strings as chairman, CEO, and major shareholder, the vote signals that shareholders are finally paying attention—and that this long‑running family saga may soon see a new chapter.
