The government has decided not to revoke Jin Air’s business license over the firm’s board appointment of a non-Korean member in violation of local transport laws. 

The Ministry of Land, Infrastructure and Transport said on Friday that it made the decision regarding Korean Air's budget affiliate after a comprehensive review on the matter. 

The ministry said it judged that license revocation will have more negative effects, such as job insecurity for workers and inconveniences for customers, than social benefits. 

The ministry will instead restrict approval of new routes for Jin Air for a certain period of time. 

The government had been reviewing whether to strip the business license of the nation's second-largest budget airline after finding Cho Hyun-min, a U.S. citizen and former marketing executive, served on the company's board of directors for six years from 2010 to 2016. 

Under local aviation law, a foreign national cannot hold a post on the board of a domestic airline. Cho is the younger daughter of Korean Air Chairman Cho Yang-ho, whose family members are facing multiple allegations, including embezzlement and tax evasion.