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The agreement follows the initial share subscription agreement signed in November 2020. Upon execution, Korean Air will absorb all Asiana Airlines assets, liabilities, rights, obligations, and personnel.
The South Korean government and state-led creditors provided KRW 3.6 trillion in liquidity support to Asiana Airlines to stabilize the domestic aviation industry following pandemic-driven losses. Korean Air managed Asiana Airlines’ financial and operational restructuring during the acquisition process, which included full public fund repayment.
Merger ratio and corporate governance
The merger ratio has been set at 1 share of Korean Air to 0.2736432 shares of Asiana Airlines. This figure was calculated based on the base market price under Korea’s Capital Markets Act, utilizing a weighted arithmetic average of closing prices over the past month, the past week, and the most recent trading day. Through this transaction, Korean Air’s capital is projected to increase by approximately KRW 101.7 billion.
Korean Air plans to conduct the transaction as a small-scale merger in accordance with Korea’s Commercial Act. Under these provisions, the Korean Air board resolution will substitute for the general shareholder meeting, while Asiana Airlines will convene an extraordinary general meeting in August to resolve the merger.
To ensure transaction fairness, Korean Air implemented the Ministry of Justice's guidelines for director conduct during corporate reorganizations. The ESG Committee served as a special review body to audit transaction terms, while independent external experts verified valuation methodologies. Detailed fairness measures and results will be disclosed in the upcoming registration statement.
Operational standardization
Following the May 14 contract execution, Korean Air will submit a merger application to the Ministry of Land, Infrastructure and Transport (MOLIT). In June 2026, the airline will apply for Operations Specifications (OpSpecs) amendments to standardize Asiana Airlines aircraft and safety systems under Korean Air’s existing Air Operator Certificate (AOC).
Once domestic approvals are finalized, Korean Air will proceed with sequential regulatory filings with international aviation authorities to align safety management systems and operational protocols across the expanded global network.
Infrastructure and service optimization
Korean Air is finalizing specific investments to support its expanded operations:
Service upgrades: lounge renewals, catering updates, and terminal relocations to improve passenger experience
Training standardization: flight crew training programs standardized to ensure procedural consistency across both airlines
Facility modernization: remodeling of the Operations and Customer Center (OCC), Cabin Crew Training Center, and Aviation Health and Medical Center to manage increased volume
MRO capacity: enhanced maintenance infrastructure, including a new engine maintenance plant and an expanded Engine Test Cell (ETC) near Incheon International Airport
Strategic synergies
The integration will elevate Korean Air’s global market presence and establish Incheon International Airport as a dominant global hub through optimized network connectivity and increased transit efficiency. Korean Air is also finalizing the loyalty program consolidation in coordination with the Korea Fair Trade Commission and relevant authorities to ensure a seamless transition for passengers.
[Reference] Integration Timeline
