By YOUKYUNG LEE
AP Business Writer

SEOUL, South Korea (AP) - Korean Air Lines said Monday that two daughters of its chairman will resign from their executive positions amid mounting public criticism over the women's behavior and the family's smuggling allegations.

An official at the Korea Customs Service, meanwhile, confirmed that authorities raided the airline's headquarters in Seoul seeking evidence on alleged smuggling and tariff evasion.

Chairman Cho Yang-ho announced the resignation of his daughter Hyun-ah, who returned to leadership last month after a four-year hiatus following a "nut rage" scandal, and her younger sister Hyun-min, who is under investigation for allegedly hurling a cup of water at a business meeting.

Media reports cited anonymous tips from airline employees that the Cho family smuggled foreign goods into South Korea by disguising them as corporate assets. Korean Air spokesman said the family is fully cooperating with the investigation.

The Cho family's troubles angered many South Koreans who resent abuses of power by elite families connected to many of the country's biggest publicly listed businesses. Such family-run conglomerates dominate the South Korean economy.

The families and their companies are facing growing pressure for stricter oversight and more transparency in corporate governance.

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