Peach Airlines refunded tickets due to flight cancellations... South Korean court orders compensation of 600,000 won per passenger

Peach Airlines, which canceled a flight to Incheon due to a defect in the aircraft, must pay 600,000 won (approximately 60,000 yen) in compensation to each of the 60 Korean passengers.
Peach Airlines argued that it was exempt from liability under its terms and conditions because it had taken measures to provide alternative flights or refunds, but its argument was not accepted.
According to the Korean legal community on the 3rd, the Seoul Central District Court filed a lawsuit for damages against Peach Airlines filed by passenger A and about 60 others.
The first-instance court ruled that Peach Airlines should pay 600,000 won (approximately JPY 40,000) in compensation to each adult passenger and 400,000 won (approximately JPY 40,000) to each minor.
Mr. A and his companions were scheduled to board an aircraft departing from Naha Airport in Okinawa Prefecture and arriving at Incheon International Airport at around 1:00 p.m. on June 29, 2018. However, a defect was discovered during an aircraft inspection before takeoff.
It was not a quick fix. Peach Airlines offered refunds or alternative flights a day or two later, forcing passengers to make unplanned expenditures.
The extra day or two spent on the island resulted in expenses for accommodation, transportation, and food. Some of the passengers were musicians who were unable to attend scheduled performances. Students had to miss school.
However, Peach Airlines did not offer any additional compensation. All they received was 80,000 won (about 8,000 yen) in points. The passengers filed a lawsuit against Peach Airlines in June 2020. During the course of the trial,
Mr. A and his accomplices claimed compensation, claiming that "their planned itinerary was canceled or changed due to flight cancellations, causing them mental distress."
On the other hand, Peach Airlines claimed "exemption from liability". The terms of carriage state that "In the event of a flight cancellation, passengers will be offered an alternative flight.
Based on the provision that states "each party shall be provided with a supply or refund," the company argued that "it has been agreed not to claim damages arising from individual circumstances."
However, Peach Airlines' argument was not accepted. The court stated that "the terms of carriage state that 'we have no liability other than to take measures for refunds.'
"Since there is no explicit provision such as 'no liability will be imposed,' it is difficult to consider that this clause is intended to exempt the airline from liability as asserted by the airline."
The court ruled that "the cause of the cancellation, the airline's response measures, and the expected damages caused by the cancellation
"We took into consideration the schedule changes, flight distance, travel time, and fare of the flight," and decided to award 600,000 won per adult and 400,000 won per minor.
The decision was reached seven years after the incident occurred and five years after the lawsuit was filed. As neither side appealed the first-instance ruling, the decision became final.