Hyundai Glovis has expanded its investment in Air Incheon’s acquisition of Asiana Airlines’ cargo unit to ₩200.6 billion ($148 million), significantly exceeding its original ₩150 billion commitment and positioning the logistics company as the deal’s dominant financial backer.
The increased investment gives Hyundai Motor Group’s logistics arm a 45.2% stake in the acquisition fund and secures right of first refusal should the merged cargo airline be sold. The move transforms what began as a supporting investment into effective control over South Korea’s emerging air freight consolidation.
Air Incheon, currently the country’s only dedicated cargo carrier, plans to deploy approximately ₩470 billion to acquire Asiana’s cargo business, with remaining funds earmarked for aircraft procurement and operational integration. The transaction, mandated by European Union regulators as a condition for Korean Air’s Asiana takeover, has attracted intense investor interest due to the cargo unit’s market position.
The fundraising succeeded partly due to what industry observers call the “monopolistic position” of Asiana’s cargo operations and the acquisition’s pricing at roughly four times EBITDA. Hyundai Glovis has been building air cargo capabilities through its Incheon International Airport distribution center, scheduled for completion this year.
The investment represents a calculated bet on air freight consolidation, though questions remain about operational synergies and whether the premium pricing reflects realistic growth prospects in South Korea’s competitive cargo market.
