S.Korea Jin Air shares slide after report of potential cancellation (updated)

Jin Air Co

09/05/2018 02:35

(Adds background on Cho and family)
    By Joyce Lee
    SEOUL, May 9 (Reuters) - Shares in South Korea's budget
carrier Jin Air Co Ltd  272450.KS  tumbled as much as 9 percent
to a six-week low on Wednesday after a South Korean TV channel
reported the transport ministry is considering cancelling the
airline's licence. 
    The ministry internally discussed last week whether to
cancel Jin Air's licence 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
U.S. citizen, violating South Korean transport law, TV channel
KBS reported late Tuesday citing unnamed sources. 
    Cho, also a former executive at affiliate Korean Air
 003490.KS , is under investigation by police for suspected
assault after she allegedly threw water at an attendee of a
business meeting.  urn:newsml:reuters.com:*:nL3N1SB2A4 
    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
 003490.KS .  urn:newsml:reuters.com:*:nL3N1RZ07K 
    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 percent, compared to flat wider
market  .KS11  as of 0114 GMT. 
    

 (Reporting by Joyce Lee; Additional reporting by Dahee Kim;
Editing by Edwina Gibbs and Stephen Coates)
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net))