SEOUL, Apr. 24 (Korea Bizwire) — The brand value of Korean Air Lines Co. has been dropping since the latest scandal surrounding the owner family erupted, and it may be outranked by its rival, according to an appraisal website Tuesday.
The “share price” of Korean Air in the brand stock market, as rated by Brandstock, ended at 473,000 won (US$439) on Monday, the lowest since 467,000 won of March 29 last year.
Brandstock measures brand value by having its members trade company shares in a simulated stock market using cyber money that can be used only within the website.
The brand value price of the air carrier has been slipping since April 16 soon after Cho Hyun-min, former vice president and the youngest daughter of the company chairman, was accused of abusively treating people working with her.
The scandal started on allegations that she threw water in the face of an ad agency manager in a fit of rage during a meeting for not being able to answer her question, and it soon led to suspicions of smuggling and other law breaches by the chairman’s entire family, including his wife, who is also accused of abusing company staff.
Korean Air has never lost the No. 1 ranking in the airline industry, except in 2015, when Cho’s older sister, Hyun-ah, was embroiled in the famous “nut rage” incident. The carrier was outranked by Asiana Airlines from January 2015 to April 2016 but snatched back the top position.
Asiana’s brand value price rose 16.3 percent during the scandal to close at 470,000 won Monday.
Another appraising tool by the website, Brandstock Top Index (BSTI), showed Korean Air’s brand value falling to 12th place from 10th in just a week, while Asiana rose from 36th to 28th. BSTI takes into account both the brand share price and results of periodical surveys of consumers. The next round of consumer surveys may well place Asiana higher than Korean Air, according to the website.
“The brand value (of Korean Air) cannot but continue to fall because the water rage scandal is still unfolding,” a Brandstock official said. “The brand value may slide in a single moment, but recovery is very difficult. The troubling situation will linger for some time for Korean Air.”