South Korea Antitrust Watchdog Moves Toward Sanctions Against Korean Air, Asiana

The Korea Fair Trade Commission has sent examination reports to the carriers after investigators concluded that seat capacity on the Cheongju-Jeju route fell below required levels, according to BigGo Finance. The examination reports contain investigators’ findings and proposed sanctions but do not represent a final decision by the commission.

The case centers on Korean Air, Asiana and Korean Air affiliate Jin Air. Regulators allege that combined capacity on flights between Cheongju and Jeju dropped below 90% of 2019 levels between the completion of the merger on Dec. 12, 2024, and the end of 2025, BigGo Finance reported.

The FTC conditionally cleared Korean Air’s acquisition of Asiana in February 2022, imposing remedies on 26 international and eight domestic routes where it identified competition concerns, according to the report. Among those requirements was an obligation to keep annual seat capacity at no less than 90% of 2019 levels until specified structural remedies were completed.

The capacity calculation covers affiliated low-cost carriers as well as Korean Air and Asiana because regulators assess the combined competitive position of related airlines operating in the same market, according to BigGo Finance.

Jeon Seong-bok, director general of the FTC’s Business Combination Review Division, said regulators examined compliance across the routes covered by the capacity requirement and found Cheongju-Jeju was the only one that failed to meet the threshold, the publication reported. He did not disclose the size of the shortfall, citing commercially sensitive information.

FTC examiners have recommended enforcement fines and criminal complaints against the three corporate entities, according to the report. They did not recommend complaints against individual executives or employees. The proposed measures remain subject to review by the full commission.

Source: South Korea Antitrust Regulator Pushes Back on Korean Air Bid to Ease Merger Curbs

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The regulatory action comes as Korean Air and its affiliates are separately seeking relief from capacity requirements on routes connecting South Korea with Guam.

Korean Air, Jin Air, Asiana, Air Busan and Air Seoul applied in December to lower the minimum capacity requirement on the Incheon-Guam and Busan-Guam routes to 70% of 2019 levels from 90%, according to BigGo Finance. The carriers cited weaker tourism demand for Guam, deteriorating infrastructure and changes in travel patterns.

The airlines also asked the regulator to treat certain structural remedies as fulfilled when slots are voluntarily surrendered, even if another carrier does not apply to use them, the report said.

The deterioration in demand has at times been severe. Citing South Korea’s Ministry of Land, Infrastructure and Transport aviation statistics, BigGo Finance reported that a Korean Air flight from Guam to Busan on Nov. 7, 2025, carried three passengers.

FTC examiners nevertheless recommended rejecting the airlines’ request to relax the Guam conditions. Regulators concluded that the carriers had not demonstrated a sufficiently material change in circumstances after Dec. 24, 2024, when the corrective measures were finalized, according to the report. Weakening demand for Guam travel had already become apparent before that date.

Jeon said the absence of a material change after the measures were finalized was the principal reason investigators recommended rejecting the request, according to BigGo Finance.

The proceedings now move to the commission’s deliberative process. The airlines will be allowed to submit written arguments and make oral statements before the full commission determines whether the merger conditions were violated, what sanctions should apply and whether the Guam-related requirements should be changed.

No fines or criminal complaints have been finalized, according to BigGo Finance. The ultimate decision will be made after commissioners review the carriers’ arguments and supporting evidence.

Source: BigGo Finance