Preparation for the 2018 Pyeongchang Winter Olympics in South Korea have taken a knock following the shock resignation of president Yang-ho Cho.

Cho has stepped down from the Pyeongchang Organising Committee (POCOG) with immediate effect to concentrate on his role as chair of the Hanjin Group – a shipping company facing “critical financial issues”.

Thanking the government, the International Olympic Committee (IOC) and the International Paralympic Committee, Cho said: “For the past two years, I have truly put forward my very best efforts to work with every member of the Organising Committee to prepare a successful Olympic and Paralympic Winter Games in 2018.

“I can proudly say that POCOG has become a strong team, and the challenges we have overcome have allowed us to achieve success at our first official test events this past February.”

Cho has been a crucial part of the Organising Committee’s endeavors to plan a successful event. Since becoming president in August 2014 Cho has taken the lead of several delicate issues such as the delayed venue construction and the dispute over the location of the Olympic Stadium.

No replacement has yet been announced by the committee.