Jin Air (LJ, Jeju) could lose its business licence should the South Korean Ministry of Land, Infrastructure and Transport (MOLIT) choose to enforce harsh disciplinary measures against the Korean Air (KE, Seoul Incheon) unit following revelations it broke boardmember citizenship regulations.
According to the KBS news agency, MOLIT began its inquiry after media reports stated Cho Hyun-min, daughter of Hanjin Group chairman Cho Yang-ho, had been a registered Jin Air board member despite holding US citizenship, in contravention of Korean airline ownership law.
According to Reuters, a MOLIT official has confirmed the regulator has considered revoking the carrier's licence but that no decision has yet been taken.
At the onset of its investigation last month, MOLIT warned in a statement it would consider taking legal and administrative measures against Jin Air if it found any evidence of wrongdoing.
For her part, Cho has since resigned from her various roles at Korean Air and Jin Air while her father faces increased resistance from the carrier group's shareholders over what they claim is the Cho clan's mismanagement of the company.
