Korean Air to become South Korea's only "super-large airline" by end of 2026

Report, photo copyright by : Gan Yung Chyan, KUCINTA SETIA

According to Yonhap News Agency, Korean Air said on 11 December 2024 that the company participated in Asiana Airlines' private placement and had paid 131,578,947 shares on the same day. The merger process of the two airlines, which lasted more than four years, has come to a successful conclusion.

The total amount of Korean Air's acquisition is 1.5 trillion won (about 7.63 billion Dollars). The company paid a contract deposit of 300 billion won in December 2020, an intermediate payment of 400 billion won in March 2021, and a final payment of about 800 billion won on the same day. As a result, Korean Air holds 63.9% of Asiana Airlines' shares and becomes its largest shareholder.

Korean Air submitted a merger application to competition regulators in 14 countries and regions in 2021, and has been approved by 13 countries except the U.S. regulator (Department of Justice, DOJ). Since the U.S. Department of Justice opposed the merger by filing an antitrust lawsuit, but did not raise any objections, it can be regarded as approving the merger of the two companies.

Korean Air has included Asiana Airlines as its subsidiary on 12 December 2024, and the new shares will be listed on 3 January 2025. By the end of 2026, the two airlines will complete the integration of "two into one" in an orderly manner. By then, South Korea's only "super-large airline" will be born.