Korean Air Wage Increase by 3.4%... Congratulatory Bonus Also for Asiana Merger

Bonus of 50% Paid Upon Completion of Legal Procedures for Merger Approval

Korean Air employees' wage increase rate for this year has been set at 3.4% (based on base salary). They will also receive a congratulatory bonus if the corporate merger with Asiana Airlines is approved.

On the 14th, the Korean Air labor union announced that the company notified them of this wage increase plan the day before. A 3.4% increase in base salary amounts to about 120,000 KRW per month (2.46 million KRW annually) for technical full-time managers. The increase will be paid retroactively on this month's payday. Previously, in October last year, the Korean Air union had delegated the authority to conclude wage and collective agreements to the company, intending to allow the company to focus on the successful corporate merger with Asiana Airlines.

The company's decision to pay a congratulatory bonus if the corporate merger with Asiana Airlines receives final approval from authorities in each country is interpreted as a response to the union's concession. Korean Air will pay a 50% bonus once the legal procedures related to the Asiana Airlines merger are completed. Each employee will receive 600,000 welfare mall points on the 1st of next month, and the company’s contribution to self-insurance will be increased from the current 5,000 KRW to 15,000 KRW.

Through collective bargaining, an early retirement support system will be operated for employees before entering the wage peak phase. The flexible working hours system will be expanded to allow starting work at 8 or 9 a.m., and the limit for overseas general university tuition support will be increased to 30% of tuition fees. Additionally, the limit for housing purchase and jeonse (key money deposit) loan support will be raised from a maximum of 60 million KRW to up to 100 million KRW.