Korean Air Completes Acquisition of Asiana Airlines as Subsidiary

Korean Air announced on December 12th that it has acquired 63.88% of Asiana Airlines’ shares, making it a subsidiary.

This move comes after receiving approval from regulatory authorities globally, and Asiana Airlines will hold an extraordinary general meeting of shareholders on January 16th, 2025, to appoint new directors and establish a new structure. The integration of the two companies is expected to take approximately two years to prepare.

After the merger, to enhance synergy effects, efforts will be made to diversify the timing of overlapping routes, open new routes, and improve customer service. There will be no personnel reductions, and some overlapping personnel will be reassigned. Mileage exchange rates between the two companies will be reported to the Korea Fair Trade Commission by June 2025, and customers will be informed following discussions.

Asiana Airlines, established in 1988, is South Korea’s second-largest airline, with routes extending to various cities in Japan, Europe, and America. Faced with financial difficulties due to heightened competition, a consortium by HDC Hyundai Development and Mirae Asset Daewoo announced their acquisition in December 2019, but plans were halted due to the pandemic. In November 2020, Korean Air announced its acquisition of Asiana Airlines for approximately 1.8 trillion Korean Won.

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