"Unfair 50 Million Won Fine on Airline Facing Bankruptcy... Reduced by Half"

Ministry of Land, Infrastructure and Transport Imposes Fine on Airline for Unauthorized Aircraft Reduction
Central Administrative Appeals Commission Halves Fine Due to Minor Negligence and Financial Difficulties

[Asia Economy Reporter Moon Chaeseok] An administrative adjudication decision has ruled that imposing a fine of 50 million KRW on a small airline operating two aircraft due to a minor negligence was unjust.

The Central Administrative Adjudication Committee of the Anti-Corruption and Civil Rights Commission announced on the 7th that it decided to reduce the fine by half, considering that "the violation was not serious and the company is facing severe financial difficulties," in response to the administrative adjudication request filed by the small airline fined.

A International Airlines, which had owned and operated three aircraft, operated only two aircraft after the lease period of one aircraft ended due to worsening business conditions.

The Ministry of Land, Infrastructure and Transport imposed a fine of 50 million KRW on A Airlines for violating the Aviation Business Act by not obtaining prior approval for the change in business plan despite the reduction of one aircraft.

In response, A Airlines filed an administrative adjudication request with the Central Administrative Adjudication Committee, seeking cancellation of the fine.

The committee acknowledged that A Airlines clearly violated the Aviation Business Act when disposing of the aircraft but judged that the violation was due to minor negligence or error.

Considering that A Airlines has been in a state of complete capital erosion for a long time and faced severe financial difficulties to the extent that it received an improvement order from the Ministry of Land, Infrastructure and Transport last year, the imposition of a 50 million KRW fine was deemed somewhat harsh.

Lim Gyu-hong, Director of the Administrative Adjudication Bureau at the Anti-Corruption and Civil Rights Commission, said, "Although the administrative agency's disposition is not illegal, if it is too harsh, it is a decision that it is unjust. Administrative adjudication is a means of relief that considers not only the illegality but also the unfairness of the disposition."

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