After four years announcing the decision to acquire Asiana Airlines on 16 November 2020, Korean Air has completed its acquisition of the airline. On 12 December 2024, Korean Air acquired 131,578,947 newly issued shares of Asiana Airlines, representing a 63.88% ownership stake and making Asiana Airlines a subsidiary of Korean Air.
Korean Air has officially finalised its share acquisition of Asiana Airlines with a significant payment of KRW 800 billion on 11 December 2024. This milestone marks the completion of the long-anticipated share purchase transaction. The total investment now stands at KRW 1.5 trillion, a figure that also factors in the KRW 300 billion deposit and the KRW 400 billion interim payment made earlier.
This strategic move strengthens Korean Air’s foothold in the competitive aviation market, aligning with its broader vision of expansion and operational synergy. By consolidating resources with Asiana Airlines, Korean Air is set to enhance its route network, improve service offerings, and position itself as a more formidable player in the global aviation industry.
This latest development is being closely watched by industry insiders and aviation enthusiasts alike, as it signals a transformative shift in the dynamics of South Korea’s airline landscape. Passengers can look forward to the potential for more streamlined connections and elevated travel experiences as the two airlines begin their integration journey.
Korean Air aims to finalise its integration with Asiana Airlines within two years, with a strategic focus on optimising its network by diversifying flight schedules on overlapping routes, expanding services to new destinations, and bolstering safety investments. The merger is designed to boost the competitiveness of South Korea’s aviation industry, enhance Incheon Airport’s status as a key international hub, and extend the airline’s global network reach.
Importantly, there will be no workforce restructuring as part of this process. Instead, the airline plans for natural staff growth driven by business expansion. Employees in roles that overlap between the two airlines will be redeployed within the organisation, ensuring stability for the workforce while supporting the seamless integration of operations.
The integrated frequent flyer programme framework will be submitted to the Korea Fair Trade Commission by June 2025. Programme details will be communicated to customers following regulatory review.
Timeline of Korean Air’s acquisition of Asiana Airlines
| Date | Milestone |
|---|---|
| November 16, 2020 | Hanjin Group announces decision to acquire Asiana Airlines |
| November 17, 2020 | Investment agreement signed by Hanjin KAL, Korea Development Bank and affiliated shareholders Exchangeable bonds acquisition agreement signed by Hanjin KAL and Korea Development Bank New shares acquisition agreement signed by Korean Air and Asiana Airlines Perpetual bonds acquisition agreement signed by Korean Air and Asiana Airlines |
| December 2, 2020 | Hanjin KAL raises KRW 500 billion from Korea Development Bank through new share acquisition |
| December 3, 2020 | Hanjin KAL raises KRW 300 billion from Korea Development Bank through exchangeable bonds Korean Air receives KRW 800 billion loan from Hanjin KAL Korean Air makes KRW 300 billion down payment for new Asiana Airlines shares acquisition |
| December 29, 2020 | Korean Air transfers KRW 300 billion won in perpetual convertible bonds to Asiana Airlines |
| January 14, 2021 | Korean Air submits business combination reports to Korea Fair Trade Commission and 13 overseas competition authorities |
| February 4, 2021 | Turkish Competition Authority approves merger |
| March 12, 2021 | Korean Air raises KRW 3.316 trillion won from new share sale |
| March 15, 2021 | Korean Air makes KRW 400 billion interim payment for new Asiana Airlines shares acquisition |
| May 4, 2021 | Taiwan Fair Trade Commission approves merger |
| May 20, 2021 | Thailand’s Office of Trade Competition Commission concludes review |
| May 25, 2021 | The Philippine Competition Commission concludes review |
| September 9, 2021 | The Malaysian Aviation Commission approves merger |
| November 11, 2021 | Vietnam’s Ministry of Industry and Trade approves merger |
| February 8, 2022 | The Competition and Consumer Commission of Singapore approves merger |
| February 21, 2022 | The Korea Fair Trade Commission grants conditional approval of merger |
| September 1, 2022 | The Australian Competition and Consumer Commission approves merger |
| December 26, 2022 | The Ministry of Commerce of the People’s Republic of China approves merger |
| March 1, 2023 | UK’s Competition and Markets Authority approves merger |
| January 31, 2024 | The Japan Fair Trade Commission approves merger |
| February 13, 2024 | The European Commission grants conditional approval of merger |
| May 2024 | Korean Air begins route transfer of Europe routes to T’way Air |
| June 2024 | Air Incheon selected as preferred bidder for Asiana’s freighter business |
| August 2024 | Master agreement signed regarding sale of Asiana freighter business |
| November 26, 2024 | Korean Air submits acquisition timeline for Asiana Airlines shares to U.S. Department of Justice |
| November 28, 2024 | European Commission approves merger |
| December 12, 2024 | Korean Air acquires 63.88% stake in Asiana Airlines |
About Korean Airlines
For over 55 years, Korean Air has been at the forefront of global aviation, transporting more than 27 million passengers in 2019, prior to the COVID-19 pandemic. Operating from its world-class hub at Incheon International Airport, the airline connects 115 cities across 40 countries on five continents, utilising a modern fleet of 158 aircraft and the expertise of over 20,000 dedicated professionals. Recognised as a leader in the industry, Korean Air boasts an impressive array of accolades, including a coveted 5-star airline rating from Skytrax, as well as Airline of the Year and Cargo Operator of the Year honours from Air Transport World. As a founding member of the SkyTeam alliance, Korean Air has also established itself as one of the largest transpacific carriers through its joint venture with Delta Air Lines.
In 2024, Korean Air continued its award-winning streak, earning the title of Best Airline for Onboard Service at the Global Travel Awards. Its loyalty programme, SKYPASS, was celebrated for Best Frequent-Flyer Award Redemption, while the airline also achieved top rankings in several other categories, including second place for Best First-Class Seat Design and third place for Best Airline Cuisine, Best Business-Class Seat Design, Best Flight Attendants, and Best Airport Staff/Gate Agents.
Adding to its impressive haul, Korean Air received the APEX 5-star global airline rating for the eighth consecutive year in 2024. The airline was also named Best Business and First Class Airline in the USA Today 10Best Readers’ Choice Awards for the second consecutive year and earned recognition for Best Airline Onboard Menu in its First-Class cabin at Global Traveler’s 2024 Leisure Lifestyle Awards.
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