The head of Korean Air says his two daughters will resign from all their positions at the company over a public outcry following the "water rage" scandal involving his younger daughter.

In a written statement on Sunday, Chairman Cho Yang-ho apologized to the nation and Korean Air employees for causing controversy.

He said Korean Air Senior Vice President Cho Hyun-min and his older daughter and president of KAL Hotel Network, Cho Hyun-ah, will step down from all of their posts within Hanjin Group.

His older daughter was at the center of the “nut rage” controversy in 2014 when she ordered the plane that she was on to return to its gate because she was upset about how some macadamia nuts were served to her. 

Chairman Cho said the company will appoint a professional executive, Suk Tai-soo, CEO of KAL Hotel Network, to the newly created post of vice chairman of Korean Air, and vowed to set up a committee to prevent a recurrence of the recent incident.