Korean Air to invest 750B KRW to acquire full ownership of inflight service subsidiary, strengthening vertical integration for supply stability
Korean Air will acquire the remaining 80% stake (5,010,343 shares) in Korean Air C&D Service, which operates inflight catering and duty-free businesses, for 750 billion KRW, making it a wholly owned subsidiary.
The acquisition aims to secure supply stability for inflight meals and internalize inflight sales, strengthening vertical integration, which is expected to bring long-term cost savings and operational efficiency.
The acquisition amount of 750 billion KRW represents 6.84% of Korean Air's equity (approximately 10.96 trillion KRW) and will be paid in cash.
The closing date has been postponed from June 1, 2026 to July 31, 2026 due to delays in Fair Trade Commission merger clearance; re-disclosure will follow upon approval.
As of end-2024, the target company had total assets of approximately 1.2978 trillion KRW, sales of 666.5 billion KRW, and net profit of 37.9 billion KRW, indicating sound financial health that will positively impact Korean Air's consolidated financials immediately.
Since this transaction does not involve new share issuance, there is no dilution for HANJINKAL shareholders; instead, improved profitability of Korean Air is expected to indirectly enhance shareholder value.
[AI Comprehensive Analysis]Korean Air's full acquisition of its inflight service subsidiary is a strategic move to mitigate supply chain risks and enhance profitability through vertical integration, positively impacting mid-to-long-term enterprise value. However, short-term uncertainty remains due to potential delays in regulatory approval.
KOSPI Filing Information
Filing: [Correction of Description] Decision on Acquisition of Stocks and Investment Securities of Other Corporations (Major Management Matters of Subsidiary)