Death of Korean Air President, CEO Cho Yang-ho

Cho Yang-ho died in Los Angeles on Sunday, Korean Air announced on Monday. He was 70 years old. The company did not reveal the cause of death.

Cho succeeded his father as President and CEO of Korean Air in 1999. The following year, he became one of the founders of the SkyTeam Air Alliance, an initiative that propelled Korean Air on the international map.

Cho was also head of Korean Air's parent company, Hanjin Group, one of the conglomerates of the South Korean family.

In recent years, Cho has been in the headlines for all the wrong reasons. He and his family have been accused of fostering a culture of abuse and violence in the business.

Investors now hope that the company's governance problems are behind it: Hanjin Transportation shares rose 14% in Seoul after the announcement of Cho's death. Korean Air grew at least 4% in the morning.

A few weeks before his death, Cho was removed from his position as Chairman of Korean Air's Board of Directors. He was on trial on charges of embezzlement and breach of trust. He denied the charges against him.

The 2014 incident "Rage Nuts" – when Cho's daughter, Heather Cho, assaulted two Korean Air flight attendants for serving her macadamia nuts in a bag instead of a bowl porcelain – was perhaps the most infamous example of the corrosive environment of the company. Last year, Cho's youngest daughter, Emily Cho, faced a wave of public criticism for allegedly throwing a drink at a meeting participant. She was then cleared of all charges related to the incident.

Cho's widow, Lee Myung-hee, is currently facing criminal charges for physically and verbally abusing her staff. The alleged abuse includes allegations that she assaulted an employee for having forgotten to buy ginger and sprayed another with water for driving too slow. The criminal charge against Lee was issued by a South Korean lawmaker earlier this year.

Paula Newton and Jake Kwon contributed to this report.