Asiana Airlines (OZ, Seoul Incheon) has increased its stake in subsidiary Air Seoul to 100% after agreeing to acquire an additional 36 million shares for KRW180 billion won (USD128 million). The purchase was confirmed via a May 13, 2025, regulatory filing. Asiana said the deal was designed to improve Air Seoul's financial structure.
On the same day, Asiana Airlines announced that it would reduce the number of Air Seoul common shares on issue by merging eight shares into one share of common stock with the same par value of KRW5,000 (USD3.57) to compensate for Air Seoul's deficit. Consequently, the number of issued shares will reduce from 39.5 million to 4,937,500.
"As the parent company, we have decided to participate in the paid-in capital increase to improve Air Seoul’s financial structure, including resolving capital erosion, and to ensure stable business operations,” an Asiana spokesperson told the Chosun Ilbo newspaper.
While Air Seoul's sales have steadily increased since the end of the COVID-19 pandemic, the airline has been in a state of continuous capital erosion for the past three years.
Asiana Airlines also says it will financially assist its other low-cost subsidiary, Air Busan (BX, Busan), by buying KRW100 billion (USD71 million) of perpetual convertible shares issued by that carrier.
"We decided to acquire these new perpetual convertible bonds in order to prepare for Air Busan's internal and external uncertainties and to support the improvement of its financial structure," the Asiana spokesperson said. The bonds pay 5.55% annual interest and mature on May 14, 2055.
Despite Asiana's assistance, its parent entity, Korean Air, plans to merge both of Asiana's low-cost subsidiaries into its own, Jin Air, and create a single enlarged airline. However, there is no fixed timeline for that in place. Late last year, Korean Air finalised its purchase of a 63.9% shareholding in Asiana.
