On December 29th, a Jeju Air Boeing 737-800 experienced a severe accident during its landing at Muan International Airport. The plane skidded across the runway and eventually crashed into a concrete wall on the edge of the airport. A fire broke out, leading to the tragic loss of 179 out of 181 passengers and crew on board. This disaster marks Jeju Air’s first fatal accident since its establishment in 2005.
As the third-largest
in South Korea by passenger numbers, Jeju Air has taken a significant hit due to this tragic incident. The airline’s stock price plummeted 15.7% during the morning trading session on December 30th, reaching its lowest level since it was listed in 2015. It later recovered slightly but still closed with an 8.4% loss. Additionally, shares of AK Holdings, the parent company of Jeju Air, dropped by 12%, reaching their lowest point in 16 years.
South Korean financial authorities have estimated that the total compensation for the accident at Muan International Airport will amount to approximately 1.525 trillion won (around 1.03 billion USD). Of this amount, 1.472 trillion won (1 billion USD) will be allocated for
, while the damages to the aircraft itself are valued at 53.7 billion won (36.5 million USD), according to reports from Maeil Business Korea News.
The liability compensation will be covered by five insurance companies: Samsung Fire & Marine Insurance, KB Insurance, DB Insurance, Meritz Fire & Marine Insurance, and Hana Insurance. However, the exact contribution from each insurer has not yet been determined.