April 27, 2024

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[THE INVESTOR] Uncertainties over whether Jin Air’s license will be canceled have been eliminated, said KTB Investment and Securities on Aug. 20, maintaining a “buy” recommendation and 36,000 won (US$32.09) target price. 

The Ministry of Land, Infrastructure and Transport has announced that it has decided not to cancel the low-cost carrier’s license over appointing Cho Hyeon-min, a foreign national, to its board of directors, violating the law. Approval of new routes and registration of new aircrafts will be limited for the time being. Doubts that have plagued the budget carrier’s stock price for the past five months have been resolved. Although stocks will be traded at a discount until the restrictions are lifted, new routes planned for this year are short international services from Cheongju and will not have major effects, said analyst Lee Han-jun.

Most of its proposals for improvement, including reshuffling decision-making process, promoting management transparency, strengthening internal control system and building a horizontal organization culture, can be implemented within this year, he added. 

By Hwang You-mee (glamazon@heraldcorp.com)