Premature comeback

KAL scion's return to management illustrates chaebol's brazenness

Cho Hyunmin, the younger daughter of the late Korean Air Chairman Cho Yangho, returned to two management posts Monday. Her comeback was made 14 months after she was forced to resign from all positions at the Hanjin Group amid a controversy over her misbehavior ― and only two months after her father died.

The youngest child of the late tycoon came under fire last year for allegedly throwing a cup of water during a business meeting with a supplier firm. She was acquitted after being investigated on charges of violence and obstruction of business. "No legal problems are hindering her return to management posts," the group said in a news release.

However, the lack of legal obstacles cannot justify her premature comeback. After the "cup-throwing" ruckus, a series of legal violations and irregularities by the owner family were revealed. These included the abuse of employees by her mother, and smuggling luxury goods into the country using the nation's largest flagship carrier. This is time for Hyunmin to reflect on her past misdeeds, not return to management. Her move is unthinkable unless the Cho family regards the group as its private property. Even neighborhood mom-and-pop stores cannot be run in this way.

Cho Hyunmin's unexpected comeback seems to be related to the "succession battle" among the three children ― the others are Hyunah who became infamous earlier for her "nut rage" scandal, and Cho Wontae, the only son ― of the late businessman. Business watchers presume that Cho Wontae might have attempted to barter his takeover of control of the group with his sisters' return to management. If so, it is worrisome that the three scions of the Hanjin Group will run the nation's 14th largest family-run conglomerate, or chaebol, only because of birth, not ability.

The three were promoted at ultrahigh speed in their father's company without demonstrating any management skills in their performances. on the contrary, they caused various social stirs, eroding the group's corporate value and throwing it into an "owner risk" moral hazard. It is frustrating to repeatedly watch this outdated management succession. We have to ask what the KAL's board of directors is doing and why in fact does it have outside directors.