Korean family feud

A READER writes:  Is it true that the owner of Korean Air Lines and his shipping tycoon brother hate each other so much that they do not talk?  Business people in the public eye do not air dirty laundry in front of the world.  Is this a classic case of a family feud?  What caused the rift, and what could have prevented it?  As for the lady who got mad at a staff member of Korean Air, whose daughter is she?  Is family upbringing to blame?

My reply:

Your question seems more suited for Biz Buzz, which I’m sure you follow regularly.

But you are right about one thing:  the rift among the four sons of Cho Choong Hoon, the patriarch of the Hanjin business empire in South Korea, erupted right after the latter’s passing in 2002.

As their inheritance, the eldest son, Cho Yang Ho, received Korean Air Lines; the second, Cho Nam Ho, Hanjin Heavy Industries and Construction, a shipbuilding firm.  The third, Cho Soo Hoo, was put in charge of Hanjin Shipping, which makes cargo containers for worldwide trade.  The youngest, Cho Jung Ho, was left with Hanjin finance and insurance companies.

Many of us might have been content with what we were given, but then again, when faced with a dilemma perceived to be highly unfair, who knows how we would react? 

So even if, as you say, the Cho family has always been in the limelight in their native land, three years after their father’s passing, the three younger brothers united to fight against the eldest, because they felt that their father’s will was unfair.

The patriarch had divided the conglomerate as described above, but the brothers decided to battle it out.

They declined to discuss the details of the feud in public:  Cho Jung Ho told “Forbes Asia” that “detailed [media] coverage would be unproductive” because the disputes were at best a private matter.

But he did allow himself to be quoted as saying, “I hate him [Cho Yang Ho].”

The proximate cause, then, was the alleged unfairness of the division of inheritance.

Could this have been prevented if the brothers were raised to watch out for each other?  After all, Asians are supposed to have strong family bonds, including respect for elders shown by Koreans.

Perhaps, but then again, personal details revealed about this family would probably be in the realm of speculation.  Perhaps you can direct this question to Biz Buzz!

In an ironic twist, the youngest is now the wealthiest.

When Cho Jung Ho broke away from the fold in 2005, he decided to buckle down to create an empire based on merit rather than family ties.

His companies, which he renamed as Meritz Financial, have made him a billionaire, a lot more than what his eldest brother and nemesis has earned through Korean Air.

The third brother has since passed away, while the second brother is on good terms with the youngest.

The eldest appears to be isolated, but as with Korean soap operas, no one knows if a reconciliation would materialize in the future.

Nut rage

Troubles seem to be never-ending for the eldest brother, as his daughter, Cho Hyun Ah, made headlines around the world with her temper tantrum while in first class on a Korean Air flight in New York City in October 2014.

Cho Hyun Ah reportedly got angry at and even slapped a steward who served her macadamia nuts in a bag instead of on a plate.

She ordered the flight to return to the gate to drop him off, delaying the flight.

Charges were filed against her, she apologized in public, and so did her father.  She also resigned from the company.

Was this temper tantrum a result of upbringing, you ask?  I don’t know.  But the following are some incidents reported by media after the incident.

Cho Hyun Ah went to the United States to give birth to twin boys, for them to secure US citizenship, which many people do.

Fair enough.

However, many Koreans reportedly felt that she did this primarily so that her children do not have to render compulsory military service, like other Korean males when they come of age.

Cho Hyun Ah’s brother reputedly would drive recklessly, and once, he even allegedly shoved an elderly woman who confronted him about his wild behavior, an incident that was investigated by the police.

As for the father himself, he was convicted of tax evasion (with other members of the family) after purchasing planes from Boeing for the airline.

It is tempting to point a finger at upbringing and entitlement. But everyone makes mistakes, and hopefully, the Cho clan has learned bitter lessons, instructive for all of us, however fascinating they might be.

Queena N. Lee-Chua is on the board of directors of Ateneo de Manila University’s Family Business Development Center.  Get her book “Successful Family Businesses” at the University Press (e-mail [email protected].)  E-mail the author at [email protected].