Korean Air, based at Seoul Incheon with a fleet of 183 aircraft, has announced the settlement of a long-standing damages lawsuit filed by subsidiaries of South Korea's LG Group. The legal battle, which spanned over a decade since its initiation in 2013, involved allegations of collusion among airlines to fix fuel surcharges, negatively impacting LG's export competitiveness. Although specific settlement terms were not disclosed, reports suggest that both Korean Air and Asiana Airlines made payments to LG in the third quarter of 2025, leading to the withdrawal of the suits.
This dispute was initially triggered by a 2010 decision from the Korea Fair Trade Commission to impose KRW120 billion in fines on airlines for price-fixing practices. While the case involving domestic carriers has been resolved, litigation against foreign airlines such as Singapore Airlines, Air France, Cathay Pacific, Japan Airlines, and Thai Airways International continues to unfold.
Context and Industry Impact
This legal resolution underscores ongoing regulatory concerns about anti-competitive behavior in the aviation industry. The outcome might influence future industry practices and regulatory oversight both within South Korea and internationally.
"The resolution marks a significant step in addressing long-standing legal disputes in the aviation sector," said a Korean Air spokesperson.
