Shares of low-cost carrier Jin Air down over possible business cancellation

By Lim Chang-won Posted : May 9, 2018, 11:28 Updated : May 9, 2018, 11:28

[Courtesy of Jin Air]


SEOUL -- Shares of Jin Air, a low-cost airline run by South Korea's Hanjin group, fell sharply on Wednesday on news reports that transport authorities discussed the possibility of canceling its business license.

As of 11:00 am (0200 GMT), Jin Air was down 4.36 percent to trade at 30,700 won (28.4 US dollars). Hanjin Kal Corp., the group's holding company, and Korean Air, also saw a simultaneous fall. Hanjin Group units have already suffered a business setback because of a scandal involving the youngest daughter of group owner Cho Yang-ho.

There have been allegations that Cho Hyun-min, who uses her English name, Cho Emily Lee, threw a glass cup and sprayed plum juice during a business meeting with advertising agency officials on March 16.

Wednesday's fall was triggered by unconfirmed reports that policymakers at the Ministry of Land, Infrastructure and Transport held discussion on whether to cancel Jin Air's license. The ministry has probed allegations that Emily is an American citizen and illegally served as Jin Air's board member for six years from March 2010.

Foreigners are not allowed to join a board of directors at flag carriers. After the scandal erupted, Emily was dismissed as Korean Air's executive director, Ji Air vice president, Hanjin Travel CEO and KAL Hotel Network CEO.

Emily has told investigators that she lost her temper because the advertising official did not properly answer her questions.  She made a series of apologies for her "foolish and imprudent" behavior, but public fury has been fanned by additional disclosures about Emily's arrogant behavior and insulting remarks at a number of private and business meetings.

The scandal sparked a flurry of investigations by police, customs officials and transport authorities into possible illegal activities by Cho's family. There have been a series of revelations by whistle-blowers about misconducts and illegal acts by the ruling family.
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