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The reaction of phenol with chloroform ($CHCl_3$) in the presence of aqueous $KOH$ is the Reimer-Tiemann reaction. This reaction introduces an aldehyde group ($-CHO$) at the ortho position of the phenol. Due to intramolecular hydrogen bonding in the ortho-hydroxybenzaldehyde (salicylaldehyde), it is the major product, while the para-hydroxybenzaldehyde is the minor product. Thus, Statement-1 is correct.
Ortho-hydroxybenzaldehyde (salicylaldehyde) exhibits intramolecular hydrogen bonding, which makes it volatile with steam. In contrast, para-hydroxybenzaldehyde exhibits intermolecular hydrogen bonding, leading to higher molecular association and lower volatility. Therefore, they can be separated by steam distillation, where the ortho isomer distills over. Thus, Statement-2 is correct.
Final Answer: Both Statement-1 and Statement-2 are correct.
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