[2020 National Audit] "Eastar Incident, Ministry of Land's Responsibility"... Kim Hyun-mi "Measures Have Limitations"

Assemblywoman Sim Sang-jung, Responsibility of Democratic Party and Ministry of Land
Kim Hyun-mi "Measures Inevitably Have Limitations"

Minister of Land, Infrastructure and Transport Kim Hyun-mi is reviewing documents while responding to questions from committee members during the National Assembly Land, Infrastructure and Transport Committee's audit of the Ministry of Land, Infrastructure and Transport, the Administrative City Construction Agency, and the Saemangeum Development Agency held at the Government Sejong Complex in Sejong City on the 16th. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] On the 16th, Sim Sang-jung, a Justice Party lawmaker, expressed regret over the failure to summon Lee Sang-jik, an independent lawmaker and founder of Eastar Jet, as a witness at the National Assembly audit, pointing out that the responsibility for the 'mass layoffs' crisis growing to this extent also lies heavily with the Democratic Party and the Ministry of Land, Infrastructure and Transport.

At the Ministry of Land, Infrastructure and Transport's audit by the National Assembly Land, Infrastructure and Transport Committee that day, Rep. Sim said, "The airline is falling apart, but the Land Committee has not even summoned a single witness who is the actual owner," adding, "Eastar workers have been laid off and are on a hunger strike in front of the National Assembly, yet both parties have ignored the witness request, which I deeply regret."

He said, "Looking at how Rep. Lee has lived so far, he was a typical vulture capitalist," and criticized, "The Democratic Party led such a person into politics, and when the issue escalated, they made him leave the party, saying it has nothing to do with us."

He also emphasized, "I believe the Ministry of Land, Infrastructure and Transport bears significant responsibility," stating, "The most important asset in the airline business is international air routes, and despite Eastar Jet having a very high capital erosion rate, it was allocated 15 routes after 2017. There were many conveniences given."

He further argued that an investigation is needed regarding Eastar Jet's lease of Boeing 737-MAX aircraft in December 2018, which was already suspected of structural defects, for as much as 200 billion won.

Minister Kim Hyun-mi of the Ministry of Land, Infrastructure and Transport explained regarding the allocation of routes to Eastar Jet, "Eastar Jet's financial condition had been continuously poor since its establishment but slightly improved in 2017 and 2018," adding that the route allocation was made when the situation was relatively better.

Regarding the lease of the Boeing 737-MAX aircraft, she said, "The contract was made before (the structural defect accident occurred)."

Minister Kim said, "I think it is very problematic that Eastar Jet failed to pay employment insurance premiums," and added, "When I met with Rep. Lee, I strongly urged him to resolve issues such as unpaid employment insurance and wages, but it was not accepted."

She continued, "If Eastar Jet were operating normally, we could take various measures, but since the company has been in a state of complete capital erosion since the end of last year and is not operating, there are limits to the actions we can take."

This content was produced with the assistance of AI translation services.