Two Korean Air heiresses resigned from their executive roles Sunday after investigators raided the company's headquarters to collect evidence regarding allegations they had abused subordinates.
The boss of Korean Air has apologised for the "immature" behaviour of his two daughters and announced their resignation from the official positions they held at the company following separate controversial incidents.
She is also suspected of verbally insulting an employee at a Incheon-based hotel affiliated with Hanjin Group, Korean Air's parent company, and later having the worker quit for not recognising her.
In 2014, Cho Hyun Ah, also known as Heather Cho, was jailed for five months for ordering a Korean Air plane to return to its gate at a NY airport after she was angered over the way a packet of macadamia nuts was served to her in first class.
Cho said Korean Air will create a new management position to hire a senior manager outside the Cho family member and establish a compliance committee. According to The Straits Times, in the process of kicking the crew member off the plan, Cho Hyun-ah also made a taxiing plane return to its gate, causing a flight delay in the process.
In February, Lee Jae-yong, the de facto leader of the huge Samsung business empire, walked free after his prison sentence was suspended.
Younger daughter Cho Hyun-min, a marketing executive at the airline, was recently pulled into police investigations for assault.
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Cho Hyun-min publicly apologized for the fracas on Facebook, saying her behavior was "foolish and reckless".
The incident was dubbed "nut rage", prompting the sister's case to be described as "water rage".
The move did little to assuage public fury, with almost 90,000 people signing an online petition urging the government to ban the firm from using "Korean" in its name.
The water scandal reignited frustration in South Korea with family-run conglomerates, known as "chaebol". Cho was the head of the airline's cabin service at the time.
Police have launched an investigation into the allegations against Cho Hyun-min.
South Korean media reports have cited anonymous tips from airline employees that the Cho family smuggled foreign goods into South Korea by disguising them as corporate assets.
"As chairman of Korean Air, as well as a father, I feel bad about the immature actions of my daughters", the airline's chief executive Cho Yang-ho said in a statement. "I apologize to everyone". "I am to blame for everything".