South Korea’s Fair Trade Commission staff have rejected Korean Air’s request to ease seat-supply obligations tied to its merger with Asiana Airlines. The recommendation covers both a broader bid to relax 2026 capacity requirements across affected routes and a separate request to lower the target on the Cheongju-Jeju route to 70% of 2019 levels.
The merger remedies require Korean Air and affiliated carriers to maintain annual seat capacity at no less than 90% of 2019 levels on 40 domestic and international routes. FTC examiners found no sufficient change in circumstances to justify revising those conditions, despite pressure from higher fuel costs, exchange-rate moves and regional volatility affecting demand.
The staff also proposed referring Korean Air and three employees to prosecutors over alleged deletion of materials during an on-site inspection. The matter now moves to the commission’s full review, leaving the existing merger conditions in place until a final decision is made.