Korean Air has approved plans to reacquire full ownership of Korean Air C&D Service, alongside a funding support commitment linked to refinancing the subsidiary’s acquisition debt.
The airline’s board approved the purchase of the remaining 80% stake in C&D Service from private equity firm Hahn & Company for approximately KRW750 billion ($500 million), returning the inflight catering and duty-free operator to full ownership by the airline.
As part of the transaction, Korean Air also approved a separate funding support commitment related to the refinancing of C&D Service’s acquisition borrowings, covering roughly KRW710 billion ($476 million) in debt and associated financing costs, according to company filings.
Korean Air originally sold a majority stake in the unit to Hahn & Company in 2020 as part of a liquidity-raising programme during the pandemic.
The reacquisition reflects the airline’s broader strategy to reintegrate core service businesses as it prepares for long-term expansion following its merger with Asiana Airlines.
Bringing catering and duty-free operations back in-house is expected to strengthen operational control and support service integration across the combined airline group.