Korean Air Files Amendment to Merger Registration Statement with No Changes to Merger Terms

In response to the Financial Supervisory Service's request for correction, Korean Air has filed an amended securities registration statement for the merger with Asiana Airlines. Key merger terms including the exchange ratio of 1:0.2736432 and the issuance of 20,337,721 new shares remain unchanged.
The amended statement includes Korean Air's tentative half-year 2026 results on a separate basis: revenue of 9.535 trillion won, operating profit of 778.7 billion won, and net profit of 145.4 billion won, down 75.3% year-on-year, with a net loss of 97.3 billion won in the second quarter.
While concerns over post-merger debt ratio increase and share dilution persist, the submission of the amended filing resolves uncertainty about schedule delays. Only 0.44% of shares opposed the small-scale merger, indicating smooth progress.
Korean Air maintains a shareholder return policy of up to 30% of separate net income through FY2026. Its separate debt ratio stood at 270.9% at end-H1 2026, up 27 percentage points from year-end 2025.
[AI Summary]This amendment is a procedural compliance with the regulator's request and does not alter the merger's economic terms. However, Korean Air's Q2 net loss and Asiana's extreme debt ratio of 2109.70% highlight integration risks. Short-term downward pressure on the stock exists until new shares list on January 4, 2027, but merger synergies remain a long-term goal.