As the official merger of Korean Air and Asiana Airlines approaches next month, stocks related to the combined airline are experiencing a significant rise. The surge is fueled by expectations of synergies from the merger, particularly following the Hoban Group's acquisition of a major stake in Hanjin Kal, the parent company of Korean Air.
According to the Korea Exchange, as of 9:40 a.m. on November 10, Korean Air shares rose by 2,800 won (9.62%) to 31,900 won. At the same time, Korean Air's preferred shares surged by 8,800 won (29.98%) to 38,150 won.
Hanjin Kal has also shown strong upward momentum for three consecutive trading days, with shares increasing by 20,500 won (9.88%) to 228,000 won. The preferred shares of Hanjin Kal have been on a six-day rally, leading to their designation as a warning stock, resulting in a trading halt for the day.
On the same day, Asiana Airlines shares rose by 9.24% to 8,510 won, while Asiana IDT, the airline's IT subsidiary, saw a 29.94% increase to 18,360 won amid expectations of business restructuring.
Korean Air and Asiana Airlines are set to complete their merger registration on December 17, officially launching the combined airline. This marks the end of their separate operations nearly six years after the acquisition process began in November 2020, resulting in the creation of South Korea's first mega carrier.
Market analysts anticipate that the synergies from the merger, including expanded transfer demand through route adjustments and reductions in fixed costs such as maintenance and leasing fees, will begin to materialize in 2027.
* This article has been translated by AI.
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