After more than five years of effort, Korean Air will fully absorb Asiana Airlines, to launch integrated airline in December 2026.

• South Korea's flag carrier,Korean Air and Asiana Airlines on Wednesday approved a long-awaited merger that will pave the way for the launch of a new, integrated Korean Air on December 17.
• The agreement comes about five and a half years after Korean Air announced its decision to take over Asiana Airlines. The two airlines said they will sign the official contract on Thursday.
• The merger ratio has been set at 1 share of Korean Air to 0.2736432 shares of Asiana Airlines.

South Korea's flag carrier, Korean Air, will launch its integrated flag carrier on Dec. 17, after completing all legal procedures for its high-profile acquisition of Asiana Airlines, the boards of the two companies said Wednesday.

The final agreement follows the initial share subscription agreement signed in November 2020. With this, Korean Air will absorb all Asiana Airlines assets, liabilities, rights, obligations and personnel for the full-scale integration of the two carriers.

Under the merger terms, Korean Air will comprehensively inherit Asiana Airlines’ assets, liabilities, rights, obligations and workforce. The merger ratio was set at 1 to 0.2736432 for Korean Air and Asiana Airlines shares, respectively. Korean Air’s capital is expected to increase by approximately 101.7 billion won ($68.3 million) following the transaction.

Earlier, the Korean government and state-led creditors provided 3.6 trillion won ($2.42 billion) in liquidity support to cash-strapped Asiana following the outbreak of the COVID-19 pandemic.

Korean Air managed Asiana’s financial and operational restructuring during the acquisition process, which also included full public fund repayment.

Following Korean Air’s contract execution slated for Thursday, the carrier will submit a merger application to the Ministry of Land, Infrastructure and Transport.

• Once the two airlines formally sign the contract Thursday, Korean Air said it would submit a merger application to the Ministry of Land, Infrastructure and Transport. The carrier will then apply for operations specifications amendments to standardize Asiana Airlines aircraft and safety systems under Korean Air’s existing air operator certificate in June.
• Asiana Airlines will hold a temporary shareholders’ meeting in August to approve the merger plan, and Korean Air is set to hold a board meeting to approve the agenda on the same day.

Once domestic approvals are finalized, Korean Air will proceed with sequential regulatory filings with international aviation authorities to align safety management systems and operational protocols across the expanded global network.

“The integration will elevate Korean Air’s global market presence and establish Incheon International Airport as a dominant global hub through optimized network connectivity and increased transit efficiency,” a Korean Air official said.

The company is on track to finalize the consolidation of its loyalty programs, including the integration of mileage systems from both carriers, in coordination with the Fair Trade Commission and relevant authorities to ensure a seamless transition for passengers.

Upgraded services and facilities ahead of the launch of the integrated carrier.

Korean Air has upgraded its lounges at Incheon International Airport, while training flight crew members to ensure procedural consistency across both airlines. The company is also modernizing facilities, including cabin crew training centers, to manage increased volume following the integration.

Korean Air emphasized that the launch of the integrated airline will strengthen the country’s aviation industry, bolster Incheon Airport’s role as a global hub and create synergy in expanding global aviation networks.

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