Jin Air's license intact after 'nut rage' sister's scandal; shares soar

South Korea’s Jin Air escaped the worst of regulatory wrath Friday when it was allowed to keep its business license in the wake of public outrage over the behaviour of members of its founding family. The country’s No.2 budget carrier’s license was put under review after it was found that family member Emily Cho held US citizenship while serving as board director in violation of South Korean law. Although Jin Air kept its license, it will be restricted from registering new aircraft and routes for a “certain period of time”, the transport ministry said in a decision that pared initial sky-high gains for its stock. Cho, a member of the family which controls Jin Air and parent Korean Air Lines, provoked a storm of anger after she allegedly threw water at an advertising agency manager. The incident came four years after an infamous “nut rage’ scandal in which her sister Heather delayed a flight because she objected to the way nuts were served. The ministry said it will keep its restrictions in place, until Jin Air implements measures to prevent violations of aviation laws and to improve its corporate culture. The carrier has proposed “cracking down on its top-down, authoritarian culture”, increasing the number of its outside board directors, and creating a system that will protect whistleblowers, the ministry said. Jin Air said in a statement that it welcomed the ministry’s decision.<br/>