Korean Air (KE, Seoul Incheon) has concluded a long-standing damages lawsuit filed by subsidiaries of South Korean conglomerate LG Group, the airline confirmed to ch-aviation.

While the carrier declined to disclose specific settlement terms, South Korean outlet SBS Biz reported that both Korean Air and Asiana Airlines paid settlements to LG in the third quarter of 2025, leading the plaintiffs to formally withdraw their suits.

The legal battle, dating back to late 2013, was initiated by LG Electronics, LG Chem, LG Display, and other affiliates against 12 foreign and domestic airlines. The plaintiffs alleged that their export competitiveness was eroded by artificially inflated shipping costs resulting from the airlines' collusion to fix fuel surcharges.

The litigation was originally triggered by a 2010 decision from the Korea Fair Trade Commission (KFTC) to impose fines totalling KRW120 billion (USD81.4 million) on airlines for price-fixing practices.

LG initially sought KRW404 million (USD274,000) in damages. However, the claim reportedly ballooned to approximately KRW9 billion (USD6.1 million) by the third quarter of 2025 as the litigation dragged on for over a decade.

Although the dispute with the South Korean carriers has now concluded, suits against foreign defendants - identified in local reports as including Singapore Airlines, Air France, Cathay Pacific, JAL - Japan Airlines, and Thai Airways International - remain ongoing.