Korean Air is undertaking a strategic move to regain full control over its catering and duty-free operations by acquiring an additional 80% stake in Korean Air C&D Service for KRW750 billion (USD503 million). The airline's board approved the purchase of more than 5 million shares from Hahn & Company, with completion scheduled for June 1, 2026, pending regulatory approval. Currently, Korean Air owns 20% of this unit.
This acquisition aims to enhance service stability and competitiveness before the launch of the airline's integrated operations. According to official statements, bringing these services back in-house will ensure consistent quality of in-flight meals and enable the rollout of upgraded duty-free offerings for passengers. This move follows the previous sale of the stake during the COVID-19 pandemic to obtain liquidity.
Financial and Operational Background
The subsidiary reported total assets of KRW1.3 trillion (USD872.8 million) at the end of 2024, generating sales of KRW666.5 billion (USD447 million) and posting a net income of KRW37.9 billion (USD25.4 million). In addition to the stake purchase, Korean Air committed to supporting debt refinancing, covering borrowings of about KRW710 billion (USD476.1 million). These investments are part of the airline's broader strategy to strengthen its service network and passenger offerings.
