Sejong, December 22, 2025 —South Korea’s Fair Trade Commission (KFTC) has imposed on Korean Air and Asiana Airlines a total fine of KRW 6.4 billion (approximately $4.3 million) for failing to comply with behavioural remedies attached to the approval of their merger, finding that the carriers breached commitments designed to prevent capacity reductions on key routes.
The KFTC said both airlines violated a core condition of the merger approval, prohibiting reductions in seat capacity below 90 percent of 2019 levels. The authority imposed a fine of KRW 5.8 billion on Korean Air and KRW 580 million on Asiana for the violations.
The Korean Air–Asiana transaction was first notified to the KFTC in November 2020 and received initial approval in May 2022. Final approval was granted on December 24, 2024, following overseas regulatory reviews and changes in aviation market conditions.
When approving the deal, the KFTC imposed a package of structural and behavioural remedies on 26 international routes and eight domestic routes where it identified significant risks to rivalry. Structural measures required the transfer of airport slots and traffic rights to rival airlines, while behavioural measures included bans on excessive seat capacity reductions, caps on average fare increases, and obligations to maintain service quality, including seat spacing and free baggage allowances.
The behavioural obligations remain in force until the completion of the structural remedies. According to the KFTC, Korean Air and Asiana breached the capacity-related commitments during this interim period, triggering the enforcement action.
The authority stressed that enforcement surcharges are intended to ensure the effectiveness of merger remedies and deter non-compliance in transactions that raise serious market concerns. The KFTC added that continued monitoring of the airlines’ compliance with remaining obligations is ongoing.
