Korean Air announced on the 10th that it is actively striving to obtain approval for the overseas merger review, investing over 100 billion KRW to integrate with Asiana Airlines.
Since January 14, 2021, Korean Air has reported the merger related to the acquisition of Asiana Airlines to 14 domestic and international competition authorities, including the Korea Fair Trade Commission, the United States, the European Union (EU), Japan, and China. Currently, Korean Air is awaiting approval from three competition authorities: the US, the EU, and Japan.
From the early stages of the overseas merger review, top management took the lead in negotiations with competition authorities of each country. They also engaged in an all-out effort by meeting directly with representatives of other foreign airlines to persuade them regarding new market entry and confirm support conditions.
Additionally, Korean Air operates a permanent, country-specific expert group consisting of five teams and over 100 members, implementing tailored strategies. They have contracted with domestic and international law firms and economic analysis specialists to actively respond to the demands of competition authorities in each country. From December 2020 to February this year, over two years, they have invested well over 100 billion KRW in fees for domestic and international law firms and advisory firms.
Korean Air is preparing remedial measures tailored to the requirements of overseas competition authorities to obtain merger approval. Various demands are being made by competition authorities due to concerns about competition restrictions arising from the merger of Korean Air and Asiana Airlines. Therefore, the stance is to alleviate competition restrictions by restoring the pre-merger competitive environment and inducing the entry of new airlines that can maintain sustainability.
To dispel concerns about "competition restrictions," Korean Air, together with local law firms and advisory firms, is continuously engaging in multifaceted consultations on remedial measures including specific new market entrants, as well as persuasion and efforts directed at competition authorities in each country. Through active negotiations, significant progress has been made in securing and persuading new entrant airlines for routes to the US, EU, and Japan. Korean Air emphasized, "We are actively presenting reasonable alternatives and opinions regarding excessive remedial demands from some competition authorities," and added, "We are making our best efforts to ensure that the competitiveness of South Korea's aviation industry is not damaged in the long term."
Korean Air’s goal is to continue striving to enhance consumer benefits. Korean Air stated, "We take seriously the significance of the acquisition and integration of Asiana Airlines and the impact of the aviation industry on related industries in South Korea," and emphasized, "We will continue to work harder to develop the domestic aviation industry and improve consumer benefits even after the integration."
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