Korean Air faces FTC probe over alleged merger condition violations

South Korea’s Fair Trade Commission (FTC) has begun deliberations regarding allegations that Korean Air, its affiliate Jin Air, and Asiana Airlines violated merger conditions. An examiner’s report recommends imposing penalties and referring the case for criminal investigation after finding the airlines failed to maintain required seat capacity on routes between Cheongju and Jeju.

As a condition for the takeover of Asiana Airlines, the FTC required the carriers to maintain seat capacity on designated routes at no less than 90 percent of 2019 levels. The report indicates that between December 2024 and December 2025, the airlines provided fewer than the required seats.

Additionally, the FTC examiner recommended rejecting a request from five airlines—including Korean Air, Jin Air, Asiana Airlines, Air Busan, and Air Seoul—to lower the minimum seat capacity requirement from 90 percent to 70 percent on routes connecting Incheon and Busan to Guam. The airlines cited declining tourism demand in Guam as the reason for the request, but examiners determined the circumstances did not justify modifying the existing requirements. The commission will make final decisions following a plenary session.