Korean Air will emerge as South Korea’s integrated flag carrier on December 17, 2026, marking the end of a consolidation process that has stretched over five years.
The boards of Korean Air and Asiana Airlines approved the merger agreement on May 13, 2026 with the formal contract execution scheduled for May 14, 2026. Once complete, Korean Air will absorb all of Asiana Airlines’ assets, liabilities, rights, obligations, and personnel.
The merger traces back to November 2020, when Hanjin Group first approved the acquisition of Asiana Airlines. At the time, the South Korean government and state-led creditors had provided KRW 3.6 trillion (US $2.67 billion) in liquidity support to stabilize Asiana amid pandemic-driven losses. Korean Air managed Asiana’s financial and operational restructuring throughout the acquisition process, which included full repayment of public funds.
Merger terms
The merger ratio has been set at one share of Korean Air for every 0.2736432 shares of Asiana Airlines. The figure was calculated based on the base market price under Korea’s Capital Markets Act, using a weighted average of closing prices over the past month, the past week, and the most recent trading day. Korean Air’s capital is projected to increase by approximately KRW 101.7 billion (US $75 million) as a result.
Korean Air will conduct the transaction as a small-scale merger under Korea’s Commercial Act. Under these provisions, the Korean Air board resolution will substitute for a general shareholder meeting, while Asiana Airlines will convene an extraordinary general meeting in August to approve the merger.
To ensure fairness, Korean Air followed the Ministry of Justice’s guidelines for director conduct during corporate reorganizations. The airline’s ESG Committee served as a special review body to audit the transaction terms, with independent external experts verifying valuation methodologies.
Regulatory filings and operational alignment
Following the May 14, 2026 contract execution, Korean Air will submit a merger application to the Ministry of Land, Infrastructure and Transport.
In June 2026, the airline will apply for Operations Specifications amendments to standardize Asiana Airlines aircraft and safety systems under Korean Air’s existing Air Operator Certificate.
Once domestic approvals are finalized, Korean Air will proceed with sequential filings with international aviation authorities to align safety management systems and operational protocols across its expanded global network.
Infrastructure and service investments
Korean Air said it is finalizing a range of investments to support its larger operation. These include lounge renewals, catering updates, and terminal relocations aimed at improving the passenger experience. Flight crew training programs will be standardized to ensure procedural consistency across both airlines.
On the facilities side, Korean Air plans to remodel its Operations and Customer Center, Cabin Crew Training Center, and Aviation Health and Medical Center to handle increased volume. MRO capacity will also be expanded, including a new engine maintenance plant and an expanded Engine Test Cell near Incheon International Airport (ICN).
The airline is also working with the Korea Fair Trade Commission to finalize the consolidation of the two carriers’ loyalty programs.
A long road to completion
The journey to this point took over five years and required regulatory approvals from more than a dozen jurisdictions. Approvals came in stages: Turkey, Taiwan, Thailand, the Philippines, Malaysia, and Vietnam in 2021; Singapore, South Korea, Australia, and China in 2022; the United Kingdom in 2023; and Japan, the European Union, and the United States in 2024.
Korean Air completed its acquisition of a 63.88% stake in Asiana Airlines in December 2024. The merger agreement execution on May 14, 2026 represents the final major step before the two airlines formally become one.