Korean Air faces probe over deleted documents in route case
Korean Air's Boeing 787-10 jet / Courtesy of Korean Air
Watchdog rejects Korean Air's request to ease seat capacity rule
Korean Air faces possible prosecution after three employees allegedly deleted files and emails during a Fair Trade Commission (FTC) investigation into the airline’s request to ease seat-supply obligations imposed as part of its merger with Asiana Airlines.
The FTC said Thursday that it submitted a review report recommending that Korean Air and the three employees each be referred for prosecution over alleged obstruction of the regulator’s investigation.
The recommendation is not a final decision. The case will be reviewed by the FTC’s full commission, which will make its final determination after giving Korean Air and the employees opportunities to submit their opinions and review evidence.
The watchdog conducted an on-site inspection of Korean Air’s headquarters in Seoul from Feb. 2-6, as part of its review of the airline’s request to ease seat-supply requirements on the Cheongju-Jeju and Jeju-Cheongju routes.
According to the FTC, three Korean Air employees deleted work-related electronic files and emails connected to the case between Feb. 2 and 4. Investigators determined that the actions constituted obstruction of an FTC investigation under the Fair Trade Act.
Jin Air's Boeing 737-800 passenger jet / Courtesy of Jin Air
The agency said it therefore recommended prosecuting Korean Air and each of the three employees separately. Those found guilty of obstructing an FTC investigation through the concealment or destruction of materials could face up to two years in prison or a fine of up to 150 million won ($109,000).
The investigation stems from Korean Air and four other airlines’ requests to modify corrective measures imposed following Korean Air’s acquisition of Asiana. They include Korean Air, Asiana Airlines and three low-cost carriers — Jin Air, Air Busan and Air Seoul — which will also be integrated as a converged Jin Air following the merger of Korean Air and Asiana.
The FTC ordered Korean Air in 2022, with the measures revised in December 2024, to maintain at least 90 percent of the 2019 seat capacity on 40 domestic and international routes affected by the merger.
The measures were designed to prevent a decline in competition and protect consumers from reduced capacity and higher fares.
Korean Air and the other airlines argued that external factors, including surging fuel prices and exchange rates linked to the war in the Middle East and weaker passenger demand, had made it difficult and costly to maintain the required capacity.
For the Cheongju-Jeju route, they asked the FTC to recognize the obligation as fulfilled if annual seat capacity remained at or above 70 percent of the 2019 level.
The FTC’s investigators, however, recommended rejecting the request, saying there had been no new and unavoidable change in circumstances since the corrective measures were last revised in December 2024 that would justify modifying the requirement.
The investigators also recommended rejecting a separate request by the airlines to waive or ease the 90 percent seat-capacity requirement across all affected routes for 2026.
“The FTC will continue monitoring compliance with the corrective measures to prevent potential harm to air passengers,” an official from the FTC said.