"Prompt Review Considering Difficulties in the Aviation Industry Due to COVID-19"
[Asia Economy Reporter Wondara] The Korea Fair Trade Commission (KFTC) has approved HDC Hyundai Development Company's acquisition of shares in Asiana Airlines.
On the 3rd, the KFTC stated in a press release, "After reviewing the impact of the merger on competition in the relevant market, we responded to HDC Hyundai Development that there is no concern of substantially restricting competition."
Earlier, HDC Hyundai Development signed a contract on December 27 last year to acquire 61.5% of Asiana Airlines' shares and reported the merger to the KFTC on January 30.
The KFTC explained, "Since the main business sectors of the merging companies are different?civil engineering and construction for one, and air transportation for the other?we judged that the merger would not raise concerns about restricting competition in the relevant market."
It added, "Although both merging companies operate duty-free shop businesses, considering that their detailed fields differ and their market shares are low, we made this judgment."
Meanwhile, the KFTC noted that it expedited the review process in consideration of the difficulties faced by the domestic aviation industry due to the COVID-19 pandemic, and stated that it will continue to promptly review future mergers in the relevant market.
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