South Korea’s Fair Trade Commission (FTC) has formally opened deliberation proceedings regarding two requests by Korean Air and four affiliated carriers to ease remedy orders from their merger with Asiana Airlines, alongside charges against Korean Air for obstructing an official investigation.
The case involves five airlines: Korean Air, Jin Air, Asiana Airlines, Air Busan, and Air Seoul. Under the remedies imposed for the Korean Air-Asiana Airlines merger, the carriers are required to maintain at least 90% of their 2019 seat supply capacity across 40 designated routes.
In their first petition, the airlines requested a reduction in the seat capacity requirement for the Cheongju–Jeju domestic route, seeking to lower the mandatory threshold to 70% of 2019 levels. The FTC examiner recommended rejecting the request, finding no significant or unanticipated change in circumstances following the Commission’s final remedy modification decision in December 2024.
In a broader second petition, the carriers requested an exemption or easing of seat supply obligations across all affected routes for 2026, citing soaring oil prices, volatile exchange rates, and shrinking passenger demand caused by ongoing conflict in the Middle East. Following an analysis of booking data, the examiner concluded that overall passenger demand across the routes showed no widespread decline, recommending that this request also be rejected.
Additionally, the FTC examiner filed a report recommending criminal prosecution against Korean Air and three of its employees for investigation obstruction. During an on-site inspection at Korean Air’s headquarters in Seoul between February 2 and February 6, 2026, employees deleted work-related electronic files and emails relevant to the ongoing investigation. Under Article 125 of South Korea’s Monopoly Regulation and Fair Trade Act, obstructing an investigation through document destruction or concealment carries penalties of up to two years in prison or fines of up to 150 million KRW.
The FTC has transmitted the examination reports to the respondents, initiating the formal review process. The Commission will render its final decisions following full plenary hearings.
