Kim & Chang represented Korean Air as global merger filing counsel in relation to its KRW 1.8 trillion acquisition of approximately 63.9% of shares in Asiana Airlines, both global network full-service carriers. Our firm provided multi-jurisdictional merger filing analysis and obtained clearance from all of the jurisdictions where the merger was notified, including Korea, the EU, the US, Japan and China. The merger was finalized in December 2024.

This case involved an arduous process, where it was necessary to resolve the unprecedented complexity of having to obtain merger clearance in 14 jurisdictions, while also completing the divestment of Asiana’s cargo business. Further, the success of the merger was essential as it would reorganize the Korean airline industry and enhance its competitiveness in the global market. Given the virtual absence of precedents, our firm led Korean Air’s close cooperation with the competition authorities of each jurisdiction during their merger review, and proposed and discussed appropriate remedies to successfully close the transaction and obtain approval. In particular, in order to ensure the swift divestment of Asiana’s cargo business, which was necessary for closing the deal as a key condition for its approval, we advised and assisted the parties to sell the cargo business of Asiana Airlines to Air Incheon (now AIRZETA) for KRW 470 billion through an unprecedented spin-off merger.

The remedies adopted in this case will likely serve as an important precedent for airline merger remedies in the future, considering the criticism that “slot divestment” remedies commonly applied to past airline mergers did not effectively resolve the anti-competitive concerns they raised.