Korean Air chief indicted for embezzlement

Korean Air’s Cho Yang-ho was charged for embezzling more than 20 billion won ($18 million). (Reuters)
Updated 15 October 2018
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Korean Air chief indicted for embezzlement

  • Prosecutors charged Cho Yang-ho with embezzling more than $18 million and unfairly awarding contracts to family members
  • He is also accused of taking 152 billion won from the state insurance agency in medical care benefits

SEOUL: The head of South Korean flag carrier Korean Air — whose family have been embroiled in multiple scandals including one involving macadamia nuts — was indicted Monday on charges of embezzling tens of millions of dollars and other offenses.
Prosecutors charged Cho Yang-ho with embezzling more than 20 billion won ($18 million) and unfairly awarding contracts to companies controlled by his family members, according to Yonhap news agency.
The super-wealthy owners of chaebols — the sprawling conglomerates that dominate the world’s 11th-largest economy — often attract controversy, but a series of scandals have made the Cho family one of the most notorious in South Korea.
Cho is the chairman of Hanjin Group, which includes Korean Air and used to own the now-bankrupt Hanjin Shipping line.
He was also head of the organizing committee for the 2018 Pyeongchang Winter Olympics until stepping down two years before the Games.
The 69-year-old is also accused of taking 152 billion won from the state insurance agency in medical care benefits by illegally running a pharmacy under a borrowed name.
Initially Cho was accused of evading inheritance tax of around 61 billion won when his father, Hanjin’s founder, died in 2002, but prosecutors said the statute of limitations had expired in 2014.
The date for Cho’s trial was not set and he was not detained ahead of the proceedings.
His two daughters, who held management positions at Korean Air, previously became viral sensations for temper tantrums dubbed the “nut rage” and “water rage” scandals, forcing Cho to issue a public apology and remove them from their posts.
The elder, Cho Hyun-ah, made global headlines in 2014 for kicking a cabin crew chief off a Korean Air plane after she was served macadamia nuts in a bag rather than a bowl. She later served a short prison sentence.
Earlier this year, her younger sister Cho Hyun-min was accused of throwing a drink at an advertising agency manager’s face in a fit of rage during a business meeting. She was not indicted as the victim did not want to press charges.
Their mother, Lee Myung-hee, has been questioned by police several times in connection with allegations of assault against her employees including cursing, kicking, slapping and even throwing a pair of scissors.
Cho himself has already had brushes with the law, receiving a suspended jail sentence for tax evasion in 2000 and awaiting a separate trial for diverting 30 billion won of company funds for renovating his own house.


Abu Dhabi Commercial Bank picks Barclays to advise on merger

Updated 15 November 2018
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Abu Dhabi Commercial Bank picks Barclays to advise on merger

  • Potential merger involves ADCB, Union National Bank (UNB) and Al Hilal Bank
  • A merger of the trio could create an entity with around $113 billion in assets

ABU DHABI: Barclays has been appointed by Abu Dhabi Commercial Bank (ADCB) to advise on a potential merger plan involving Union National Bank (UNB) and Al Hilal Bank, banking sources told Reuters.
The merger, announced by the banks in September, is the latest consolidation among state-owned companies in the United Arab Emirates’ (UAE) capital.
ADCB, majority owned by the Abu Dhabi government and the second largest bank in the emirate after First Abu Dhabi Bank (FAB), declined to comment. Barclays also declined to comment.
If it goes ahead, a merger of the trio could create an entity with around $113 billion in assets, according to Refinitiv data, and the UAE’s third-biggest lender after FAB and Emirates NBD.
A separate source said two banks could be created out of the consolidation, with the conventional banking units of ADCB and UNB merging to create one lender.
Another could be formed through combining the Islamic banking units of ADCB and UNB, along with Al Hilal.
AlKhaleej newspaper reported the same arrangement was being considered last month, citing sources.
The tie-up was at an early stage, UAE Central Bank governor Mubarak Rashed Al-Mansoori told reporters last week on the sidelines of a conference, adding he expected more consolidation in the future.
FAB was created by last year’s merger between National Bank of Abu Dhabi and First Gulf Bank.
The emirate of Sharjah is weighing a merger between three of its banks — Bank of Sharjah, Invest Bank and United Arab Bank, Reuters reported in September, citing sources.