Supreme Court "Esta Airlines Pays 13.8 Billion to Jeju Air for 'Failure to Acquire'"

The Supreme Court ruled that Eastar Jet should take responsibility for the failure of the merger and acquisition and return the down payment to Jeju Air.

On the 8th of last month, the Supreme Court confirmed the lower court's ruling that Jeju Air won some of the plaintiffs in a lawsuit filed against Eastar Holdings and Daedong Investment, the former holding company of Eastar Jet.

As a result, Eastar Holdings will have to pay 13.8 billion won and Daedong Investment will have to pay 450 million won to Jeju Air.

The Supreme Court explained that the lower court did not do anything wrong to influence the ruling, such as misunderstanding the legal principles.

Jeju Air and Eastar Jet signed a stock trading contract in 2020, but the merger and acquisition were finally canceled four months later due to conflict over the implementation of the pre-determined conditions of the contract.

In response, Jeju Air filed a lawsuit against Eastar Holdings and Daedong Investment to return 23.45 billion won, including a down payment.

The first trial ordered Jeju Air to pay all the compensation demanded, but the second trial reduced the amount of compensation by evaluating the level of responsibility.