At the end of December last year, the government released interim results indicating that the cause of the Jeju Air passenger plane disaster at Muan International Airport, which resulted in 179 casualties, was 'pilot error.' As investigations are concluded, it is expected that the government's liability and that of Boeing, the aircraft manufacturer, will be eliminated. The Korea Private Pilot Association and the bereaved families argue that the issues raised regarding the concrete embankment at Muan Airport and aircraft defects at the time of the disaster must also be closely examined.
According to the aviation and legal communities on the 22nd, the compensation for the bereaved families of the Muan Airport disaster will start from the aviation insurance held by Jeju Air. Jeju Air is insured with an aviation policy that covers up to $1,036,510,000 (approximately 1.44 trillion won) for the aircraft involved in the accident. Due to the large scale, five domestic insurance companies (Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, DB Insurance, KB Insurance, and Hanwha General Insurance) have participated in a consortium. Among these, the compensation limit for the victims is $1 billion.
The compensation amount will vary based on the nationality, age, and income levels of the deceased, but it is expected to be set at around $170,000 (approximately 240 million won). According to the Montreal Convention established in 1999, the compensation limit for passengers who die or are injured in an international aviation accident is at this level.
The scale of compensation and the responsible parties may change depending on the cause of the Muan Airport disaster. Recently, the Ministry of Land, Infrastructure and Transport's Aviation and Railroad Accident Investigation Committee reported preliminary findings that the pilot had incorrectly turned off the left engine while it was operating, resulting in the aircraft's main power being cut off. It was also found that there were no signs of the pilot attempting to operate the landing gear and the flaps. If the investigation concludes solely that there was pilot error, Jeju Air will become the sole responsible party.
If the conclusion is that the concrete embankment facility (localizer) was the cause of the large number of casualties, Korea Airports Corporation, which manages Muan Airport, and the Ministry of Land, Infrastructure and Transport will also have to take responsibility, and the burden of compensation may be shared. This is because there is a greater likelihood of being sued for recourse by foreign reinsurance companies.
The five insurance companies that Jeju Air is insured with have reinsured with four foreign insurers, including AXA XL in the UK. An aviation industry insider noted, 'If any additional causes are found apart from pilot error, the reinsurers could claim recourse against Jeju Air and other responsible parties for sharing liability.'
Even if the responsibility of Korea Airports Corporation and the Ministry of Land, Infrastructure and Transport is recognized, the amount of compensation paid to the bereaved families will not increase. Lee Sang-bong, an attorney at the law firm Daeryuk Aju, stated, 'If the victim has already received full compensation from the airlines, the damages would be considered fully recovered, so the government cannot provide additional compensation.'
If any defects in the aircraft are acknowledged, the bereaved families can file a lawsuit against Boeing in the U.S. in addition to domestic compensation. Boeing will also face lawsuits for recourse from foreign reinsurers. The aircraft involved in the accident is the Boeing 737-800 model, which has been reported to have had several defects in the engines installed on this model in the past.
Seo Jong-soo, an attorney at Yoon & Yang LLC, said, 'Korea has a low limit on damages for fatal accidents, but in the U.S., there is a punitive damages system, which could increase the amount received in lawsuits.' The legal community believes that pursuing legal action in the U.S. could result in 5 to 10 times larger damage amounts than lawsuits against Jeju Air or Boeing domestically.
The bereaved families of the disaster have expressed their opposition immediately after the interim results of the investigation committee were announced, stating, 'All causes of the accident are attributed to pilot error.' The Korea Private Pilot Association also condemned, 'The investigation committee is trying to conclude the cause of the accident as a single factor of "pilot error" while ignoring the complexity of the accident and overall system failure, which is a distorted conclusion stemming from a predetermined direction that seeks to make the pilot a scapegoat.'
The Korea Private Pilot Association and others argue that it is difficult to conduct an objective investigation since the investigation committee is under the Ministry of Land, Infrastructure and Transport. Recently, President Lee Jae-myung met with more than 200 bereaved families of social disasters, including the Muan Airport disaster, to offer an official apology, and during this meeting, the bereaved families of Muan Airport also requested the committee's independence.