Cho Won-tae (1-L), son of deceased Hanjin Group chairman Cho Yang-ho (2-L), has been appointed successor, but the company has not filed a formal announcement with the South Korean government. File Photo by Yonhap/EPA
May 9 (UPI) -- Korean Air's parent company may not be ready for takeoff following the death of chairman Cho Yang-ho, despite the appointment of heir and son Cho Won-tae to the position in April, according to multiple press reports.
Cho Won-tae, who rose to prominence after sibling Cho Hyun-ah threw a tantrum during a grounded flight at New York's John F. Kennedy Airport, and sister Cho Hyun-min was accused of throwing water in the face of an advertising executive, owns roughly the same number of shares in the company as his two sisters, South Korean newspaper Segye Ilbo reported Thursday.
Hanjin, the airline's parent firm, had not filed a formal notification of change in leadership, and is likely to miss Wednesday's deadline for notification to Seoul's fair trade commission, according to the report.
The delays are raising questions over whether the heirs to Korean Air are in disagreement over leadership of the company.
Cho Yang-ho owned a significant 17.84 percent of shares in Hanjin, worth nearly $299 million. The siblings are expected to share the inheritance, but are also required to pay a 50 percent inheritance tax of nearly $150 million. It is unclear how the tax burden will be shared, and whether their mother, Lee Myung-hee, will also have a say in how the inheritance is distributed.
Cho Yang-ho did not leave clear instructions in his will before his sudden death in Los Angeles in April. Son Cho Won-tae said the will instructed him to "cooperate with family" in the area of finances.
The three Cho siblings could be arguing over how the inheritance will be shared, according to analyst Park Ju-keun.
Park told the Nikkei Asian Review the two sisters could have asked the brother to "give them affiliates of the group, such as a hotel chain and a budget airline, in exchange for accepting his leadership."
Newsis reported Thursday the Cho family and other shareholders face a number of options, including the sale of stakes in other subsidiaries of Hanjin, in order to pay the inheritance tax.
