From January through July this year, 7 out of 10 international passengers who used Korean-flagged airlines flew on aircraft affiliated with Korean Air. Korean Air owns the low-cost carrier JIN AIR, and Asiana Airlines has AIR SEOUL and AIR BUSAN. Concerns about monopoly and market dominance emerged in the industry when Korean Air began acquiring Asiana Airlines.
According to the Ministry of Land, Infrastructure and Transport on the 10th, the number of international passengers on Korean-flagged airlines from the start of this year through July was 36.93 million. Of these, passengers on Korean Air–affiliated carriers numbered 25.79 million, about 70%. By airline, ▲Korean Air 11,061,163 (30%) ▲Asiana Airlines 7,222,595 (19.6%) ▲JIN AIR 4,084,489 (11.1%) ▲AIR BUSAN 2,401,992 (6.5%) ▲AIR SEOUL 1,022,809 (2.8%).
Based on the total number of passengers including foreign carriers and other global airlines (54.06 million), the share of Korean Air–affiliated carriers is 54%.
Korean Air completed merger procedures with Asiana Airlines in December last year, effectively gaining a dominant position in the domestic aviation market. To prevent consumer harm from monopoly and market dominance, the Fair Trade Commission imposed merger conditions including prohibited exceedance of average seat fare increases, prohibition on reducing supplied seats, maintenance of seat pitch, and obligations to maintain service quality such as free baggage.
Korean Air attempted mileage program reforms and seat configuration changes but withdrew them one after another after criticism that they would reduce consumer welfare. In 2023, when it tried to change bonus award ticket mileage deduction criteria from region-based to distance-based, increasing mileage deductions on long-haul routes, consumers protested and with political intervention the plan was ultimately abandoned.
Korean Air submitted a plan to merge mileage programs with Asiana Airlines to the Fair Trade Commission but received requests for supplementation and revision twice. The Fair Trade Commission judged that the available uses for Asiana Airlines' unused mileage would be reduced and that the basis for calculating the mileage conversion ratio was unclear.
Recently, while introducing premium seats, it tried to change economy seating from the existing "3·3·3" configuration to a "3·4·3" configuration but withdrew the plan after controversy over so-called "chicken coop seats" flared up. Changing to a "3·4·3" configuration would reduce lateral space by about 3 cm. Korean Air has already completed modifications on one of its 11 aircraft and plans to deploy it on the Singapore route on the 17th of this month.
A representative of a consumer organization said, "Some of Korean Air's policies reduce consumer welfare, such as raising prices or reducing seat space. Given the high market share of Korean Air–affiliated carriers, the relevant ministries, the Fair Trade Commission and the Ministry of Land, Infrastructure and Transport, should closely monitor the situation."