‘Nut rage’ heiress takes on brother in South Korea succession feud

SEOUL: The “nut rage” heiress who forced a plane to turn back over her macadamias is fighting a bitter battle — with activist shareholder support — against her brother for control of the family airline, highlighting resistance to reform in South Korea´s chaebols. Cho Hyun-ah, 45, whose family control the Hanjin group that includes flag-carrier Korean Air, made headlines worldwide with her furious reaction when she was served nuts in a bag instead of a plate in first class.

A series of scandals centring on abuse of subordinates rapidly made the Chos the South´s most vilified billionaires. But now her struggle against brother Cho Won-tae could mark a watershed moment for the family-controlled conglomerates known as chaebols that dominate business in the world´s 12th-largest economy. She has joined forces with an activist investment fund, Korea Corporate Governance Improvement (KCGI), which says better chaebol management will improve efficiency, employee engagement, and shareholder returns. Cho Won-tae inherited the chairmanship of the conglomerate´s holding company Hanjin Kal after the siblings´ father Cho Yang-ho — who led the successful bid for the Pyeongchang Winter Olympics — died last year.

But “you can´t just run a company because you happen to be a grandson of its founder”, said Lee Seung-hoon, KCGI´s head of global business. Many chaebol families retain only a small ownership stake in their companies, but maintain control through complex webs of cross-shareholdings between subsidiaries, and rapid promotions for family members.