Korean Air Finalizes Wage Deal Ahead of Merger

Korean Air has reached a landmark agreement with its labor union on wage increases and a special merit bonus ahead of its merger with Asiana Airlines.

On July 7, Korean Air held a signing ceremony for its 2026 Wage and Collective Bargaining Agreement at its headquarters in Gangseo-gu, Seoul, attended by Vice Chairman Woo Kee-hong and Union Chairman Cho Young-nam. Labor and management agreed to raise base salaries for general, technical, and cabin crew staff by up to 2.5% of total wages, retroactively applied from April 1.

The most notable element of the agreement is a special incentive bonus for employees who contributed throughout the Asiana Airlines integration process. To mark the completion of the merger with Asiana Airlines, scheduled for December 17, Korean Air will pay all employees a special merit bonus of 2 million won (approximately $1,449) per person. The bonus is set to be disbursed in a single payment on December 10, as the integration process enters its final stage.

At the signing ceremony, Vice Chairman Woo Kee-hong emphasized the successful launch of the integrated Korean Air and its establishment as a global network carrier. “This is a time when every employee must give their all with a sense of urgency,” said Vice Chairman Woo, adding, “I hope that, drawing on the resilience with which labor and management have overcome crises together, we will go on to write a new chapter in the history of this integration.”

Beyond simple wage increases, the agreement also includes institutional reforms aimed at improving employees’ actual job satisfaction. Labor and management agreed to improve the overall employee support framework, including promotion and leave systems, and also decided to expand the criteria for employee flight ticket use, strengthening welfare benefits.

These steps represent a preemptive measure to prevent organizational disruption following the merger and to harmonize differing corporate cultures. A Korean Air spokesperson conveyed the company’s commitment to maintaining a culture of mutual growth based on trust and cooperation between labor and management, and explained that the company will continue working toward creating an environment where all employees can grow together.