Jeju Air CEO Kim E-bae gives a briefing on the Muan tragedy at the Muan International Airport terminal in South Jeolla Province, Tuesday. (Yonhap)
Jeju Air CEO Kim E-bae gives a briefing on the Muan tragedy at the Muan International Airport terminal in South Jeolla Province, Tuesday. (Yonhap)

Jeju Air plans to provide emergency financial support to the families of the Muan crash victims, independent of its insurance coverage obligations.

“Funeral procedures have begun, and we are providing necessary assistance and expenses for the funerals,” Jeju Air CEO Kim E-bae said in a fourth press briefing held at a hotel in western Seoul on Tuesday.

“We are currently preparing emergency support funds to assist the victims’ families in their daily lives. We thought such assistance necessary, as the bereaved will be unable to continue their livelihoods under the current circumstances.”

The emergency funds will come from Jeju Air’s own resources, the CEO explained, but the exact amount was not immediately revealed.

As of Wednesday morning, the Transport Ministry reported that the identities of 174 out of the 179 victims have been confirmed through fingerprint analysis and DNA testing, and procedures to hand over the bodies to the bereaved are currently underway.

Multiple insurers typically participate in a consortium format to cover large-scale compensation for aviation accidents. Kim explained that the airline is currently discussing specific compensation procedures with both domestic and international insurers.

According to the Financial Services Commission, Jeju Air holds liability insurance policies with five domestic insurers — Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, DB Insurance, KB Insurance and Hana Insurance — totaling $1.036 billion. These policies are reinsured with the British insurer, AXA XL.

Under the Montreal Convention, airlines must provide compensation of up to $202,483 per passenger who dies or is injured in an international aviation accident. This amount serves as the basic compensation limit, but additional compensation may be granted if the airline is proven to have been negligent or otherwise liable. Compensation amounts are calculated individually, factoring in elements such as the victim’s nationality, age and income level.

Additionally, compensation may be provided through personal travel insurance, municipal safety insurance and other individual policies.

The Korea Life Insurance Association and the General Insurance Association of Korea have jointly set up on-site counseling centers from Monday, to assist with insurance policy checks and claims procedures.

Citizens pay tribute outside a fence at the site of the Muan plane crash tragedy at Muan International Airport, South Jeolla Province, on Wednesday. (Yonhap)
Citizens pay tribute outside a fence at the site of the Muan plane crash tragedy at Muan International Airport, South Jeolla Province, on Wednesday. (Yonhap)

Meanwhile, Jeju Air announced plans to reduce its flight operations by 10 to 15 percent until March, to manage the aftermath of the tragedy and to strengthen safety measures aimed at restoring public trust.

When asked if such a reduction in operations was due to excessive scheduling, the CEO rejected the idea, saying the measure is intended to secure "additional capacity for maintenance."

Regarding accountability among the company’s management, Kim said it is too early to discuss such matters, adding that dealing with the complex aftermath of the accident remains the top priority.