Boeing Admits Guilt in 737 Max Crash Case...336.6 Billion Won Fine

On the 7th (local time), the Wall Street Journal (WSJ) reported that Boeing has agreed to plead guilty regarding the series of 737 Max passenger plane crashes that occurred in 2018-2019.

The prosecution ordered Boeing to pay a criminal fine of $244 million (approximately 336.6 billion KRW) and to spend $455 million (approximately 627.9 billion KRW) over the next three years to improve compliance and safety programs. Additionally, Boeing will be subject to court-supervised probation for three years to verify the improvements.

[Image source=Reuters Yonhap News]

By pleading guilty, Boeing may face disadvantages such as suspension or prohibition from winning government contracts from agencies like the U.S. Department of Defense and NASA. However, the risk of the company’s actions related to the Max plane crashes being exposed to the public during the trial process has been reduced.

Furthermore, Boeing is expected to request an exemption from the government contract suspension regulations. According to sources, Boeing is currently discussing this matter with the U.S. Department of Defense. Last year, Boeing secured Department of Defense contracts worth $22.8 billion (approximately 31.4617 trillion KRW).

Boeing stated, "We have reached a principled agreement on the terms of resolution with the Department of Justice."

Previously, after the 737 Max 8 passenger planes crashed consecutively in 2018 and 2019, killing 346 people, Boeing agreed with the U.S. Department of Justice to pay $2.5 billion (approximately 3.4498 trillion KRW) in fines and compensation to avoid criminal prosecution.

However, before the deferred prosecution period under the agreement ended, an accident occurred in January this year involving an Alaska Airlines Boeing 737 Max 9 passenger plane, prompting the U.S. Department of Justice to consider resuming criminal prosecution procedures against Boeing.

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