Asiana Airlines Boosts Air Seoul Stake, Supports LCC Units

Asiana Airlines has raised its ownership in low-cost carrier Air Seoul to 100% by acquiring 36 million additional shares for KRW180 billion (USD128 million), according to a regulatory filing on May 13, 2025. The move aims to improve Air Seoul’s financial stability and address ongoing capital erosion.

To further strengthen the subsidiary’s balance sheet, Asiana will consolidate Air Seoul’s stock by merging eight common shares into one, while maintaining the same KRW5,000 (USD3.57) par value. This will reduce the total number of shares from 39.5 million to 4.94 million.

“As the parent company, we have decided to participate in the capital increase to stabilize Air Seoul’s operations and resolve its capital erosion,” an Asiana spokesperson told Chosun Ilbo. Despite a rise in revenue since the COVID-19 pandemic, Air Seoul has faced continuous financial losses for the past three years.

Asiana Airlines is also extending financial support to another of its low-cost subsidiaries, Air Busan. The airline will invest KRW100 billion (USD71 million) to acquire perpetual convertible bonds issued by Air Busan, which offer a 5.55% annual interest rate and mature in 2055.

This financial support comes as Korean Air, which completed its 63.9% acquisition of Asiana late last year, plans to consolidate Asiana’s LCCs—Air Seoul and Air Busan—with its own low-cost arm, Jin Air. However, no timeline has been confirmed for the merger.

The restructuring efforts are part of a broader initiative to streamline operations and create a stronger, unified low-cost airline brand under Korean Air’s leadership.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com