CHINA AND SOUTH KOREA
South Korea
Korean Air, Incheon's hub and a strong aerostructures and space-launch industry, with early urban air mobility trials.
Market overview
South Korea's air market reached a record 124.8 million passengers in 2025, up 3.9% and above the 2019 peak. International travel drove the growth, rising 6.3% to 94.5 million, while domestic traffic fell 2.8% to 30.2 million. Incheon, the main gateway, handled 74.1 million international passengers and 2.95 million tonnes of international cargo. Its fourth construction phase, finished in November 2024, raised capacity to about 106 million passengers a year. The airline sector is consolidating. Korean Air plans to complete its merger with Asiana on 17 December 2026, moving Asiana's aircraft onto its own operator certificate. In August 2025 it ordered 103 Boeing aircraft worth about US$36.5 billion, plus a US$13.7 billion engines and services deal with GE Aerospace, and about four-fifths of those aircraft are replacements. For suppliers, the merger means fleet and cabin harmonisation, IT and system integration, and retraining. Korea's own aerostructures and parts makers offer partnership routes into global programmes.
At a glance
- Main hubs
- Seoul Incheon; Seoul Gimpo; Jeju
- Flag carrier
- Korean Air
- Training body
- Korea Aerospace University
Airline merger (Korean Air–Asiana)aerostructures for global programmesair taxis (K-UAM)space programme
Key facts
- 124.8 million air passengers in 2025, a record: 94.5 million international and 30.2 million domestic (Jan 2026).
- Incheon: 74.07 million international passengers and 2.95 million tonnes of international cargo in 2025 (Mar 2026).
- Incheon's capacity is about 106 million passengers a year after phase 4 (completed Nov 2024).
- Korean Air ordered 103 Boeing aircraft (737-10s, 777-9s and 787s) worth about US$36.5 billion, plus a US$13.7 billion GE Aerospace deal (Aug 2025).
- Korean Air–Asiana merger date: 17 December 2026.
Key figures
Passengers carried (2023)
76,272,454
2023 · rank 8 of 52
2019–2023
Air freight, million tonne-km (2023)
12,294
2023 · rank 4 of 52
2019–2023
Source: World Bank, World Development Indicators (CC BY 4.0).
Did you know
Incheon is one of Asia's main transfer and cargo hubs.
Latest news
Typical bottlenecks in South Korea
- Integrating two airlines' fleets, systems and operations — Fleet & asset management · Airline strategy & business plans
- Certifying and launching air-mobility services — Advanced air mobility · Regulation & certification
- Winning and running work in global supply chains — Quality, safety & compliance
Sources
- https://www.koreatimes.co.kr/economy/20260109/air-passenger-traffic-hits-record-high-in-2025-on-increased-intl-travel
- https://www.asiae.co.kr/en/article/2026032709402807178
- https://www.ch-aviation.com/news/167243-korean-air-to-merge-with-asiana-airlines-in-late-4q26
- https://www.nationthailand.com/news/world/40054528
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