Watchdog begins deliberations on Korean Air's alleged obstruction of probe
Summary
Korea’s antitrust watchdog has started deliberations on three cases involving Korean Air Lines, including an alleged obstruction of an investigation linked to the carrier’s takeover of Asiana Airlines. The Fair Trade Commission’s examiner recommended criminal complaints against Korean Air and three employees, while also recommending rejection of requests to loosen merger-related seat capacity rules. Korean Air said it would review how to respond and denied obstructing the investigation.
Key Facts
- The inspection at Korean Air’s Seoul headquarters took place in February, and the examiner said employees deleted work-related computer files and emails relevant to the probe.
- Under the Monopoly Regulation and Fair Trade Act, obstructing an investigation can be punished by up to two years in prison with labor or a fine of up to 150 million won.
- Korean Air and its affiliates sought to lower the minimum seat capacity requirement on services between Cheongju and Jeju to 70 percent of 2019 levels.
- They also asked for an exemption from the 2026 seat-capacity requirement on all affected routes, citing oil price and foreign exchange volatility stemming from the Middle East war.
- The FTC said Korean Air must maintain annual seat capacity on each of its 40 domestic and international routes at no less than 90 percent of 2019 levels unless revisions are justified by significant or unavoidable external changes.
A Korean Air aircraft takes off from Incheon International Airport, Sept. 10, 2025. Yonhap
Korea's antitrust watchdog said Thursday it has begun deliberation proceedings on three cases involving Korean Air Lines Co., including the carrier's alleged obstruction of an investigation.
The Fair Trade Commission (FTC) said its examiner recommended filing criminal complaints against Korean Air and three of its employees for allegedly obstructing an investigation linked to the carrier's takeover of Asiana Airlines Inc.
According to the examination report, the employees deleted work-related computer files and emails relevant to the probe during an inspection at the carrier's Seoul headquarters in February.
Under the Monopoly Regulation and Fair Trade Act, a person who "rejects, interferes with, or evades an investigation" may be punished by "imprisonment with labor for up to two years or by a fine not exceeding 150 million won ($111,000)."
The two other cases concern requests by Korean Air and its affiliates to ease seat capacity requirements imposed in connection with the merger.
Under the FTC's orders, Korean Air is required to maintain annual seat capacity on each of its 40 domestic and international routes at no less than 90 percent of 2019 levels.
The orders allow the airlines to seek revisions in the event of significant or unavoidable changes in circumstances arising from external factors.
Korean Air and its affiliates asked to lower the minimum to 70 percent of 2019 levels for services connecting the central city of Cheongju and the southern resort island of Jeju.
The examiner recommended rejecting the request, finding no new circumstances calling for an adjustment.
The carriers separately sought an exemption from the requirement for 2026 across all affected routes, citing oil price and foreign exchange volatility stemming from the Middle East war.
The report, however, said demand across air routes showed no signs of contraction despite the market volatility. It concluded there were insufficient grounds to find an unavoidable change.
The commission will make its final decisions following deliberations at a plenary session after giving the parties an opportunity to present their defense.
The FTC said it will continue to monitor compliance with the merger remedies to prevent harm to consumers in the air passenger transport market.
Korean Air, meanwhile, said it will review how to respond after receiving the examiner's report and make clear the investigation was not obstructed.
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