Fair Trade Commission to Launch Research Project on Korean Air and Asiana Merger Next Week... Conclusion Expected Around July

[Asia Economy Reporter Kwon Haeyoung] The Korea Fair Trade Commission (KFTC) is expected to announce the results of the merger and acquisition (M&A) review of Korean Air and Asiana Airlines as early as July.

According to the government on the 31st, the KFTC will place an order for a research project on the merger of these airlines after an internal review next week.

The research period is four months, and after completing the economic analysis, the KFTC will send the review report around June, receive Korean Air's feedback, and then hold a plenary meeting to decide whether to approve, conditionally approve, or reject the corporate merger. Since the review report is usually sent two weeks after the completion of the project and the company receiving the report submits its opinion within 2-3 weeks, the plenary meeting is expected to be held as early as July.

The KFTC has formed a dedicated team consisting of four employees and two external experts to review the Korean Air-Asiana Airlines M&A.

Through the related research project, the KFTC plans to analyze whether consumer benefits such as mileage will decrease due to the integration of these airlines, and whether competition restrictions could lead to an increase in ticket prices. In this M&A case, besides the possibility of airfare increases, the reduction of mileage benefits due to competition restrictions will also be a key focus. Additionally, the possibility of competition restrictions on routes by region and country may also be examined.

A KFTC official stated, "The specific review schedule and content related to the acquisition of Korean Air and Asiana Airlines shares have not been finalized," adding, "We are conducting a thorough review in accordance with the procedures and standards prescribed by relevant laws."

This content was produced with the assistance of AI translation services.