Planes of Korean Air Co. and Asiana Airlines Inc. are seen on the tarmac at Incheon International Airport, west of Seoul, in this Nov. 2, 2023, file photo. (Image courtesy of Yonhap)
SEOUL, May 22, 2025 (Korea Bizwire) — Asiana Airlines is facing mounting criticism and potential legal action over plans to offer unequal severance packages to employees affected by the company’s upcoming sale of its cargo division to Air Incheon, scheduled for July.
According to industry sources, Asiana recently notified staff that domestic employees in its cargo unit would receive a flat severance payment of ₩50 million (approximately $37,000), while those stationed at overseas branches — including in the U.S., Europe, and Southeast Asia — would receive compensation equivalent to three months’ salary.
Given the variance in salaries, some foreign-based staff could receive as little as a few million won, with only higher earners exceeding the ₩10 million mark. The cargo division employs roughly 800 people, about 100 of whom work at foreign branches and are nationals of their respective countries.
Overseas employees have objected to the tiered payout structure, arguing that, since foreign offices are not separate legal entities, the discrepancy violates South Korea’s labor principle of equal treatment under the Labor Standards Act. They have requested a revision of the policy, which the company has rejected.
In response, affected foreign employees are reportedly preparing to file complaints with South Korea’s Ministry of Employment and Labor, as well as with labor authorities in their home countries. Civil lawsuits are also under consideration.
Asiana has defended its decision, stating that the severance arrangement complies with legal norms and was formulated following a thorough legal review. “Foreign-based employees are under different employment structures and working conditions,” the airline said in a statement. “Their treatment was determined in accordance with the labor laws of each respective country.”
The company emphasized that the transition to Air Incheon does not constitute termination, but rather a transfer of employment under existing pay and contract terms. “Severance compensation is typically provided in cases of job termination due to a company sale,” it added. “But this case involves a continuity of employment, not a dismissal.”
The controversy casts a shadow over Asiana’s broader restructuring efforts as it prepares to divest its cargo operations amid industry consolidation and its ongoing merger process with Korean Air.
M. H. Lee (mhlee@koreabizwire.com)
