Korean Air and Asiana Airlines are moving into the final phase of a consolidation that will create a dominant South Korean flag carrier and one of the world’s largest airlines. The process began in November 2020 as a government-backed plan to rescue financially troubled Asiana and was enabled by state-owned Korea Development Bank financing. Korean Air completed the acquisition of a 63.88% stake in Asiana on December 12, 2024, following competition approvals from authorities in multiple jurisdictions.
On May 13, 2026, the boards of both airlines approved a merger agreement under which Korean Air will absorb all of Asiana’s assets, liabilities, rights, obligations, and staff. The transaction will be executed as a small-scale merger, with one Korean Air share exchanged for every 0.2736432 Asiana shares, and will increase Korean Air’s capital by about 101.7 billion won.
The integrated carrier is slated to launch in December 2026 under Korean Air’s new “KOREAN” branding, its first major rebrand in more than four decades. Asiana’s brand will be phased out, and the unified airline will operate within the SkyTeam alliance. Low-cost subsidiaries Jin Air, Air Busan, and Air Seoul are to be combined into a single budget carrier, further consolidating South Korea’s aviation market.