Korean Air Chairman Rejection

[Anchor Lead]

Hanjin Group chairman Cho Yang-ho has been voted out as chief of Korean Air by shareholders. He failed to obtain two thirds of attending shareholder votes which is necessary to retain his post as director of the board.

[Pkg]

The atmosphere is tense from early morning outside the building of Korean Air headquarters where a shareholders meeting was held.

[Soundbite] We oppose Cho's reappointment as board director! Oppose! Oppose!

The conference room was packed full of some 250 shareholders. Some did not hold back their frustration and complaints. They voted not to reappoint Cho Yang-ho as board director of the major carrier. This unraveled in just 40 minutes after the meeting began. Korean Air did not actually hold a vote on the site but announced the outcome of a pre-held tally. Over 64 percent of the company's shareholders voted to approve Cho Yang-ho as director of board while 35.9 percent disapproved. The result fell short of his reappointment.

[Soundbite] Woo Gi-hong(Chairman of general shareholders' meeting) : "In accordance with the articles of association, the number of votes fell short of the necessary two-thirds support from shareholders. Therefore the motion is rejected."

The 70-year-old lost control of the flagship carrier 20 years after taking the helm from his late father and Hanjin Group founder Cho Choong-hoon in 1999. The airline issued a statement saying he lost the position as board director but is not deprived of management rights. Korean Air also mentioned that Cho who was not present at the March 27th shareholders meeting is currently in the United States.