Korean Air has confirmed its 60 trillion won investment in the United States.
In connection with this, Korean Air said Wednesday that it finalized a definitive contract for the purchase and service of aircraft and engines with Boeing under a Memorandum of Understanding (MOU) signed at the Conrad Hotel in Yeongdeungpo-gu, Seoul, on Tuesday. This concludes the previously announced $44.8 billion (approximately 60 trillion won) investment plan in the U.S., first revealed in Washington, D.C., last August.
This investment is evaluated as going beyond a simple corporate transaction, built upon close communication and support from both the ROK and U.S. governments. The government provided policy support and regulatory improvements to strengthen competitiveness in the aviation industry, while national financial institutions such as the Export-Import Bank of Korea reaffirmed their commitment to financial cooperation to facilitate smooth investment execution.
Specifically, Korean Air will invest $36.2 billion to acquire 103 next-generation high-efficiency Boeing aircraft: 20 units of the 777-9, 25 units of the 787-10, 50 units of the 737-10, and 8 units of the 777th-8F freighter. Additionally, it signed an $8.6 billion agreement with GE Aerospace and CFM International (CFM) to purchase a total of 21 spare engines, securing engine maintenance services for 28 aircraft over the next 15 years.
At the event, Cho Won-tae Han Jin-geu-rup (Chairman) stated, "It is deeply meaningful that the commitment made in Washington last year has culminated in this final contract." He emphasized, "This agreement goes beyond a mere corporate transaction; it serves as a milestone of trust that further strengthens the solid economic and technological alliance between the ROK and the U.S." He added, "If Boeing is Korean Air's wings, then GE Aerospace has played the role of the heart for our aircraft fleet. Building on our long-standing partnership, we will continue to provide the highest level of safety and service, faithfully fulfilling our role in connecting exchanges and economic development between both nations."
In fact, through this investment, Korean Air aims to prepare for mid- to long-term growth following its integration with Asiana Airlines and proactively respond to the ongoing global aircraft supply delays since the pandemic. It also plans to actively adapt to future changes in the aviation industry by introducing high-efficiency new aircraft to improve fuel efficiency and reduce carbon emissions.
A Korean Air official said, "This was made possible thanks to the unwavering trust and cooperation from both the ROK and U.S. governments, financial institutions, and partner companies." He further stated, "Based on the introduction of next-generation aircraft and collaboration with global partners, we will strengthen our future competitiveness and contribute to enhancing exchanges and economic cooperation between the ROK and the U.S."
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