SEOUL- South Korea on Friday (June 29) delayed a decision on whether to cancel the aviation business licence of budget airline Jin Air Co Ltd given the "grave impact" cancellation would have on the airline industry.
The Ministry of Land, Infrastructure and Transport conducted a review of whether Jin Air, an affiliate of Korean Air Lines Co Ltd, violated transport law by appointing a non-Korean - controlling family member Cho Hyun-min - as a board director.
Ms Cho, 35, is a US citizen and the youngest daughter of Korean Air Lines Co Ltd Chairman Cho Yang-ho.
She stepped down as senior vice-president at Jin Air in April after reports of inappropriate conduct at a business meeting prompted an outcry over the behaviour of families running conglomerates.
"Worldwide, it is very rare that a licence of a company is cancelled. Also in our case, this will have a grave impact on the airline industry. There is controversy over the legality of cancellation as well," Vice Transport Minister Kim Jeong-ryeol said at a briefing.
He said the ministry will hold a hearing and listen to the views of stakeholders including employees, and that law firms and professors have expressed mixed opinions on the matter.