Korean Air brand value plummets following scandal
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The brand value of Korean Air fell sharply in the second quarter over a series of allegations involving the family that owns it, an appraisal website showed Sunday.
The flag carrier’s brand value ranked 36th in the April-June period, down from 11th a quarter earlier, according to Brandstock, a South Korean market research firm that determines the rankings of local brands.
The decline reflects the intense public criticism directed at Korean Air Chairman Cho Yang-ho’s family over a series of allegations of physical and verbal abuse, as well as smuggling and tax evasion.
Korean Air’s brand value dropped 39 notches in the quarter following the incident.
Brandstock said Korean Air’s smaller local rival, Asiana Airlines, saw its brand rank rise to 25th place in the second quarter from 35th place three months earlier.
Questions & Answers
Q.By how many places did Korean Air's brand value fall in the second quarter?
By how many places did Korean Air's brand value fall in the second quarter?
Korean Air's brand value dropped by 39 notches during the April-June period. This decline saw it move from 11th place down to 36th in the rankings compiled by Brandstock, a South Korean market research firm.
Q.What is identified as the reason for the decline in Korean Air's brand value?
What is identified as the reason for the decline in Korean Air's brand value?
The decline reflects intense public criticism directed at Chairman Cho Yang-ho’s family. This criticism stems from a series of allegations, including physical and verbal abuse, smuggling, and tax evasion, involving the owning family.
Q.Did Korean Air's main local competitor experience a change in its brand ranking during the same period?
Did Korean Air's main local competitor experience a change in its brand ranking during the same period?
Yes, Asiana Airlines, a smaller local rival, saw its brand rank improve in the second quarter. It rose ten places, moving up to 25th position from 35th place three months earlier.
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