Scandal-prone Korean Air chairman dies weeks after ouster

This article is more than 12 months old

Apr 09, 2019 06:00 am

SEOUL: Korean Air patriarch, chairman and chief executive Cho Yang-ho died of a chronic illness on Monday just weeks after shareholders ended his 27-year tenure on the board of the country's biggest carrier due to perceived leadership failings.

Shares of the family-controlled airline and Hanjin Kal, the holding company for parent Hanjin Group, jumped on news of the death, as investors push for better governance under new management or a younger generation of the Cho family.

The death also raised the possibility of a bidding war over the 70-year-old patriarch's stake in the holding firm, said Mr Um Kyung-a, an analyst from Shinyoung Securities.

"Of course, his family will try to inherit his shares, but that can take time and money ... So that opens a window for expectations about a takeover battle," Mr Um said.

Mr Cho's only son, company President Cho Won-tae, is widely seen as his likely successor. - REUTERS