Air Seoul (RS, Seoul Incheon) had accumulated debts of KRW179 billion won (USD121 million) as of December 31, 2024, and auditors have raised doubts about its status as a going concern, according to a March 31, 2025, regulatory filing.
Despite recording record sales of KRW326.9 billion (KRW222 million) in calendar 2024, the auditors describe the business environment as "worsening" and sensitive to external factors such as exchange rates and oil prices.
"This situation indicates the existence of a significant uncertainty that may raise significant doubts about the company's ability to continue as a going concern," the report notes.
Air Seoul's current liabilities exceed current assets by KRW225.8 billion (USD153 million), and total liabilities exceed total assets by KRW139.8 billion (USD95 million). Air Seoul has been experiencing capital erosion since 2019. In January, Air Seoul defaulted on a loan provided by Asiana Airlines (OZ, Seoul Incheon).
Air Seoul is a wholly owned entity of Asiana Airlines. In turn, Korean Air recently acquired Asiana, and Korean Air plans to merge Asiana's low-cost subsidiaries, Air Seoul and Air Busan, with its low-cost carrier, Jin Air. However, Air Seoul's weak financial position may complicate this integration.
