Kumho Asiana Without Aviation, Excluded from Large Business Groups for the First Time in 38 Years

From Once Ranked 7th Among Business Groups to a Mid-Sized Company

Former Kumho Asiana Group Chairman Park Sam-gu, who is suspected of unfair support to affiliates, is attending the warrant hearing held at the Seoul Central District Court in Seocho-gu, Seoul on the 12th. Photo by Kang Jin-hyung aymsdream@

Kumho Asiana Group has been excluded from the large business conglomerates for the first time in 38 years. By excluding Asiana Airlines, which is experiencing management difficulties, Kumho Asiana Group has earned the title of a mid-sized company for the first time in its history.

On the 28th, the Fair Trade Commission announced that as of February 27, 2025, the business group "Kumho Asiana" has been excluded from the designation as a mutual investment restriction business group and a publicly disclosed business group.

Korean Air, affiliated with Hanjin Group, acquired more than 30% (63.88%) of the voting shares of Asiana Airlines, a subsidiary of Kumho Asiana, as the largest shareholder through conditional corporate merger approvals from the Fair Trade Commission and overseas competition authorities in December last year. Accordingly, Asiana Airlines and the seven companies controlled by Asiana Airlines were incorporated into Hanjin Group and excluded from Kumho Asiana Group.

Kumho Asiana, which had 24 affiliates and total assets of 17.39 trillion KRW, has thus shrunk to a business group with 16 affiliates and total assets of about 3.43 trillion KRW.

The criteria for exclusion from the designation of large business groups are total assets below 3.5 trillion KRW for publicly disclosed business groups and below 7.28 trillion KRW (0.35% of domestic gross domestic product (GDP)) for mutual investment restriction business groups.

The Fair Trade Commission explained, "The total assets of the Kumho Asiana business group decreased due to the exclusion of eight affiliates including Asiana Airlines, meeting the exclusion criteria (business groups with total assets below 3.5 trillion KRW)."

The exclusion of Kumho Asiana from the designation of large business groups is the first time in 38 years since its initial designation in 1987. Kumho Asiana was the first large business group designated when the business group designation system was introduced in 1987. At that time, it was ranked 22nd among large business groups and has been continuously designated as a mutual investment restriction business group since then.

Under the aggressive management of owner Chairman Park Sam-gu, Kumho Asiana acquired Daewoo Construction in 2006 and Korea Express in 2008, expanding its asset size to 26 trillion KRW and rising to 7th place in the business world rankings at one point. However, after the sale of Asiana Airlines, only two affiliates, Kumho Industrial and Kumho Express, remain, pushing the group down to a mid-sized company.