Date
19 September 2019
Asiana’s shares surged as much as 15.1 percent on Thursday following news of the resignation. Photo: Bloomberg
Asiana’s shares surged as much as 15.1 percent on Thursday following news of the resignation. Photo: Bloomberg

Asiana Airlines CEO quits over accounting fiasco

Asiana Airlines’ chief executive Park Sam-koo has stepped down from the post to take responsibility for the fiasco over its 2018 financial statements, Reuters reports, citing a statement from its parent Kumho Asiana Group.

Park also resigned as CEO of Kumho Industrial, Asiana Airlines’ top shareholder, and as chairman of Kumho Asiana Group, the statement said.

“Kumho Asiana Group will launch an emergency management committee headed by the vice chairman of the group to normalize our management in a short period of time and will hire a respectable person outside the company as the new chairman,” it added.

Park’s resignation comes at a time when Kumho Asiana is strapped for cash and is facing mounting debt.

The Korea Exchange last Friday suspended trading in shares of Asiana, South Korea’s second-biggest carrier, after an auditor declined to sign off on its financial statements.

The carrier got its auditor on Tuesday to approve the statements after revising its accounts that widened its annual loss. Trading in Asiana resumed on Tuesday.

The airline had two CEOs, and with Park stepping down, Han Chang-su remains its sole chief executive.

Asiana’s shares surged as much as 15.1 percent on Thursday following news of Park’s resignation, while Kumho Industrial gained 8.2 percent.

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