Wednesday, December 24, 2014

Nut Rage and the Stink of Bad Management

Part of the original Nut Rage story was the issue of nepotism within the Korean Chaebols and the controlling families.
The heirs to these families are largely exempt from the normal protocol for being hired and promoted. According to the Hankyoreh’s survey of 15 major chaebol, 28 members of the third generation of these families on average joined the companies at the age of 28.1 and became executives, reaching the highest run of the company, at the age of 31.2. In other words, after joining the company, it only took them an average of three years to be appointed executives.This is absurdly short considering that it generally takes 22.1 years for a new employee fresh out of university to be promoted to the level of executive, according to a survey of 219 companies released by the Korea Employers Federation in November.Even worse, the members of the third generation have largely accumulated the wealth that they need to inherit the management rights of these companies through expedient means such as work funneling - a practice whereby subsidiaries in a single group give large amounts of business to each other.
The Hankyoreh By Lee Jeong-hoon, staff reporter
Now about 20 days later the Korean authorities are seeking an arrest warrant for Cho Hyun-ah, the executive who became enraged and the daughter of the CEO and founder of Korean Airlines.  She is charged with a list of crimes. What is interesting to me is that the list of crimes includes what appears to be obstruction of justice charges. And, there are purportedly others included in the charges of obstruction of justice. (Yonhap News) bold is mine
Charges against Cho include violation of the aviation law, coercion and interference in the execution of duty, said prosecutors at the Seoul Western Prosecutors' Office probing the case
During questioning by prosecutors last week, Cho had flatly denied that she had physically assaulted the chief purser, prosecution officials said.
The prosecution office, however, concluded that she had pushed the flight attendant, based on the testimony of passengers and other flight attendants at the scene.
The prosecution office also sought an arrest warrant for a company executive, only identified by his surname Yeo, on charges of ordering employees to delete an initial report of the incident.
A Seoul court is scheduled to hold a hearing early next week to review the prosecution's request and determine whether to issue an arrest warrant for Cho, court officials said.
Also Wednesday, the prosecution office raided the residence and the office of a transport ministry official accused of leaking some details of the ministry's investigation into the incident.
The transport ministry official surnamed Kim, who formerly worked for Korean Air, is suspected of having made illegal contact with a Korean Air executive dozens of times over the three days after the ministry opened its probe into the incident on Dec. 8.
Does this result seem quick to you?  The incident was only 20 days ago.  Good job!



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