Korean Air fined for breaching merger regulations involving Asia.

KOREAN AIR AIRBUS A321-272NX HL-8528 (MSN 11290)

South Korea's Fair-Trade Commission has imposed a 12.1 billion won fine (approximately A$1,336,744.00) on Korean Air and Asiana Airlines for breaching conditions tied to their ongoing merger.

The penalty, the largest of its kind since 1991, was triggered by fare hikes that exceeded the inflation-adjusted cap set during the deal's approval in late 2024. Ticket prices on routes including Incheon to Barcelona, Frankfurt, and Rome rose as much as 28.2 percent above the permitted threshold.

Domestic routes like Gwangju to Jeju also saw noncompliant increases. These actions directly violated the terms designed to protect consumer interests following reduced competition. Additional merger conditions require the airlines to maintain seat supply, preserve service standards, and support fair competition through route transfers. In a related move, the FTC blocked Korean Air's attempt to merge frequent flyer programs citing a lack of clarity for existing Asiana members.

Regulators say the fine is meant to reinforce accountability and prevent monopolistic practices. Korean Air is currently working on revised plans to meet compliance standards.