‘Nut rage’ heiress slams brother atop family business

Bloomberg

The South Korean business dynasty that gained notoriety with the “nut-rage incident” is generating turbulence again.
Heather Cho, 45, the eldest daughter of the founding family’s late patriarch, voiced her discontent over how her brother has been running the Hanjin conglomerate, whose units include flag carrier Korean Air Lines Co.
Walter Cho, the 43-year-old chairman of Hanjin Group and holding company Hanjin Kal, has been running companies without adequately consulting the rest of the family, violating their father’s wishes, she said.
It’s the first time that any member of the founding family publicly voiced discontent over the management of Hanjin since the patriarch, Cho Yang-ho, died in April. In November, the siblings inherited their father’s stake in Hanjin Kal in accordance with the law.
“Hanjin Group is being managed in a way that goes against the previous chairman’s wishes,” Heather Cho said.
Hanjin Kal, which owns shares in Korean Air and other Hanjin units, rose 20% in Seoul trading, the most since April. Korean Air advanced 4.7% and Jin Air, another Hanjin Kal holding, climbed 4.1%.
Walter Cho owns 6.52% of Hanjin Kal and the older sister has 6.49%, according to a November filing. Emily Cho, the youngest in the family, has 6.47% and their mother 5.31%.
Cho gained global notoriety after she ordered a Korean Air plane to return to the gate after scolding a flight attendant for the way macadamia nuts were served in premium class. As a result of the December 2014 incident, she was convicted for usurping a pilot’s authority and spent five months in prison.