South Korea’s Ministry of Land, Infrastructure and Transport said Friday that it had decided not to revoke the business license of Korean Air’s budget affiliate, Jin Air. 

The budget carrier came under fire in April for having a US citizen, Cho Hyun-min, on its board of directors. For security reasons, foreign nationals cannot serve as board members at Korean airlines under the nation’s aviation law. 

In April, it was revealed that Cho, the younger daughter of Korean Air Chairman Cho Yang-ho, had served on Jin Air’s board of directors from 2010 to 2016.

After conducting a legal review and a number of hearings, the ministry said it had decided to impose restrictions on the air carrier instead of revoking its license. The air carrier now has to limit the number of new routes and flights it offers.

“Considering the impact (that revocation would have on) the (airline) industry and the negative consequences in terms of employment and (inconvenience to passengers), authorities decided to approve Jin Air to stay in the business,” Vice Transport Minister Kim Jeong-ryeol said at a press briefing.
In a statement, Jin Air said it respected the ministry’s decision and would do its best to normalize its business practices and prioritize passenger safety.

By Kim Da-sol (ddd@heraldcorp.com)