Korean Air Settles 12-Year Fuel Surcharge Lawsuit with LG Group
Korean Air has settled a long-running damages lawsuit brought by subsidiaries of LG Group, drawing to a close a legal dispute that has stretched back more than a decade. The airline confirmed the settlement to ch-aviation but declined to disclose financial or contractual details.
According to South Korean broadcaster SBS Biz, the settlement was reached in the third quarter of 2025. Asiana Airlines was also reported to have paid a settlement to LG during the same period. Following these payments, LG’s subsidiaries formally withdrew their claims against the two Korean carriers, ending the domestic portion of the litigation.
The lawsuit dates back to late 2013 and was filed by LG Electronics, LG Chem, LG Display, and other LG affiliates against a group of 12 domestic and foreign airlines. The plaintiffs alleged that their export competitiveness had been damaged by artificially inflated air cargo shipping costs, which they claimed resulted from collusion among airlines to fix fuel surcharges.
The legal action stemmed from a 2010 ruling by the Korea Fair Trade Commission (KFTC). In that decision, the regulator imposed fines totalling KRW120 billion (approximately USD81.4 million at the time) on multiple airlines for engaging in fuel surcharge price-fixing on international cargo routes. The KFTC’s findings provided the basis for subsequent civil claims by exporters seeking compensation for higher logistics costs.
LG’s initial damages claim against the airlines was relatively modest, reportedly amounting to KRW404 million (USD274,000). However, as the case progressed through multiple court stages over more than 12 years, the claim grew substantially. By the third quarter of 2025, local media reports indicated that LG’s damages claim had expanded to around KRW9 billion (USD6.1 million), reflecting accumulated costs and interest over the prolonged litigation period.
While the settlement resolves LG’s dispute with Korean Air and Asiana Airlines, the broader legal battle is not yet fully concluded. Lawsuits against several foreign carriers remain active. Local reports have identified defendants that continue to face claims as including Singapore Airlines, Air France, Cathay Pacific, Japan Airlines, and Thai Airways International.
The conclusion of the Korean Air settlement marks a significant milestone in one of South Korea’s longest-running aviation-related commercial disputes. It also underscores the lasting legal and financial consequences of cartel findings in the air cargo sector, where regulatory penalties can be followed by years of civil litigation from affected customers.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com