Jin Air set to strengthen its position in South Korea’s LCC market after merger
The Korean Air parent Hanjin Group is taking preparatory steps towards the integration of its LCC subsidiaries, a move that will shake up the South Korean LCC sector.
Hanjin Group now has three LCC holdings, after acquiring Air Busan and Air Seoul as part of its acquisition of Asiana Airlines. These three will be merged with Korean Air's LCC subsidiary, Jin Air.
The combined airline will operate under the Jin Air brand, and integration is expected to be completed by the first quarter of 2027.
By combining the fleets and networks, Jin Air will become South Korea's largest LCC.
There are currently eight South Korean-based LCCs, according to CAPA - Centre for Aviation: in addition to the Hanjin Group airlines, there are Jeju Air, Eastar Jet, T'Way, Aero K and the newcomer - Parata Air.
There are also 16 overseas-based LCCs serving South Korea.
LCCs made up 51.7% of domestic LCC seats in this market in 2025, and 41.9% of international seats - which represent relatively high levels.
The merger will undoubtedly make Jin Air a stronger player in the LCC sector. But the Korean LCC market is vibrant, and it will remain so after the integration of Jin Air, Air Busan and Air Seoul.
It could be argued that the LCC market in Korea was ripe for consolidation, and more mergers are not out of the question.