South Korea fines Asiana Airlines $8.7 million over merger violations with Korean Air

In December 2024, South Korea’s FTC approved the merger with specific requirements designed to maintain market competition and protect consumers. These included transferring certain flight routes to competitors, keeping average ticket prices below a set cap, maintaining seat availability, and preserving service quality such as baggage allowances and seat spacing through at least 2034. The compliance period for these conditions is ten years from approval.

In June 2025, Korean Air submitted a plan to integrate its frequent flyer program SKYPASS with Asiana Airlines' Asiana Club but faced rejection from regulators. "The regulatory body rejected Korean Air's initial plan to merge its frequent flyer program... The FTC found the proposal lacked sufficient detail, particularly regarding mileage conversion ratios and redemption options, and requested immediate revisions to protect Asiana Airlines customers." Media reports suggested that under the proposed plan one Korean Air mile would be worth only 0.7 Asiana miles—a move that would have reduced loyalty mile values by about 30%. The integration of these programs is considered essential for completing operational consolidation between the two carriers; however, this setback could delay full corporate integration until after October 2026.

Korean Air first announced plans to acquire Asiana Airlines nearly five years ago in November 2020 and completed acquisition of a majority stake—63.88%—on December 12, 2024 when it purchased over 131 million newly issued shares of Asiana Airlines.

Since then, both airlines have worked toward integrating operations without reducing staff numbers—a contrast with typical industry mergers where layoffs are common—as Korean Air expects natural staff growth as business expands.