Korean Air to Launch Integrated Airline in December 2026

Korean Air will emerge as an integrated flag carrier on December 17, 2026, marking the completion of a consolidation process spanning over five years. Korean Air and Asiana Airlines boards approved the merger agreement .

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.