South Korea Jin Air shares slide after report of potential cancellation

South Korea Jin Air shares slide after report of potential cancellation
PHOTO: Reuters

SEOUL - Shares in South Korea's budget carrier Jin Air Co Ltd tumbled as much as 9 per cent to a six-week low on Wednesday after a South Korean TV channel reported the transport ministry is considering cancelling the airline's license.

The ministry internally discussed last week whether to cancel Jin Air's license after discovering Cho Hyun-min, the daughter of the chairman of Jin Air parent Hanjin Group, had been a registered board member of the airline despite being a US citizen, violating South Korean transport law, TV channel KBS reported late Tuesday citing unnamed sources.

Cho, also a former executive at affiliate Korean Air, is under investigation by police for suspected assault after she allegedly threw water at an attendee of a business meeting.

The tantrum by the heiress reignited public anger at the behaviour of the rich and powerful, and sparked probes into her family and their businesses by South Korea's customs agency and transport ministry.

Cho and her older sister Heather Cho, who made headlines around the world in 2014 when she lost her temper over the way she was served nuts on a Korean Air flight, have stepped down from all positions in Jin Air and affiliate Korean Air.

A transport ministry official could not be immediately reached for comment.

A spokeswoman for Jin Air said the company is cooperating with the ministry's investigation and declined further comment.

Jin Air shares were down 3.9 per cent, compared to flat wider market as of 0114 GMT.

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