The government has decided to provide Korean Air and Asiana Airlines up to one and a half billion dollars each in compensation payment guarantees.
Construction and Transportation Minister Ahn Jung-nam announced the plan at a parliamentary inspection of his ministry Tuesday.
The payment guarantee will cover damage to third parties ... who suffer material and personnel damage except for passengers, cargo, and aircraft.
Ahn said his ministry came up with the decision after Lloyds of London and other re-insurance companies limited their third party compensation to 50 million dollars after the terrorist attacks in the United States.
He said the government's payment guarantee will be good only until the end of next month. He said his ministry may extend the period until the international air insurance market stabilizes.