Core Viewpoint - The introduction of a visa-free policy for Chinese group tourists to South Korea is expected to significantly boost travel between the two countries, although current travel volumes have not yet returned to pre-pandemic levels [2][4]. Group 1: Visa-Free Policy Impact - Starting from September 29, South Korea will implement a visa-free entry policy for Chinese group tourists (3 or more), allowing a stay of up to 15 days [2]. - There has been a notable increase in flight searches to South Korea, with international ticket search interest rising over 60% year-on-year, and searches for flights to Seoul and Jeju Island more than doubling [2]. - The expected increase in traveler numbers due to the visa-free policy is anticipated to manifest more clearly in 2024 [2][4]. Group 2: Current Travel Statistics - Currently, the flight volume on the China-South Korea route has recovered to approximately 86% of pre-pandemic levels, while other international routes have returned to full capacity [4]. - In the first half of the year, the passenger transport volume on the China-South Korea route reached over 7.81 million, a year-on-year increase of 24.3%, but still only about 80% of 2019 levels [4]. - It is projected that the number of travelers between China and South Korea will reach 8 to 9 million this year, with a full recovery to 2019 levels expected by 2027, largely driven by the visa-free policy [4]. Group 3: Korean Airlines' Market Position - Korean Air is the largest carrier on the China-South Korea route, operating over 100 more flights monthly than its nearest competitor, China Eastern Airlines [8]. - Korean Air plans to acquire Asiana Airlines by the end of 2024, which will become a subsidiary, and the merger is expected to be completed within two years [9]. - Post-merger, the combined fleet will exceed 200 aircraft, serving 24 cities in China with 33 routes, making it the largest foreign airline group in terms of flights to China [10]. Group 4: Implications for Chinese Airlines - The merger of Korean Air and Asiana Airlines is expected to have significant implications for international routes, particularly as South Korea serves as a major transit point for Chinese travelers heading to Europe and the U.S. [11]. - Currently, the recovery rate for China-U.S. routes remains below one-third of pre-pandemic levels, leading to increased passenger traffic for Korean airlines as travelers seek alternatives to high direct flight prices [11]. - Korean Air has seen a significant increase in market share on China-U.S. routes compared to pre-pandemic levels, as both Korean airports and airlines work to attract more transit passengers [11].

Group 1 - The introduction of a visa-free policy for Chinese group tourists to South Korea is expected to significantly boost traveler numbers starting next year, with a 15-day stay allowed [1] - As of September 11, international flight search interest for the upcoming National Day holiday has increased by over 60% year-on-year, with searches for flights to Seoul and Jeju Island more than doubling [1] - Currently, the passenger and flight volumes between China and South Korea have not yet returned to pre-pandemic levels, but the visa-free policy is anticipated to drive growth in 2024 [1][2] Group 2 - Korean Air has restored approximately 86% of its flight capacity on the China-South Korea routes, while other international routes have returned to pre-pandemic levels [2] - In the first half of this year, the passenger volume on China-South Korea routes reached over 7.81 million, a year-on-year increase of 1.52 million, representing a growth rate of 24.3% [2] - The total number of global tourists visiting South Korea in 2024 is projected to be 16.37 million, with Chinese tourists making up 28.1%, although this is only 76.4% of the 2019 figures [2] Group 3 - It is estimated that the number of travelers between China and South Korea will reach 8 to 9 million this year, with a full recovery to 2019 levels expected by 2027, largely driven by the implementation of visa-free policies [3] - Following the visa-free policy for Chinese tourists, there has been a notable increase in the number of Korean visitors to cities in China, particularly Shanghai, Qingdao, and other coastal cities [3] - Korean Air's passenger load factor on China-South Korea routes has improved by approximately 10 percentage points since the implementation of the visa-free policy [3] Group 4 - Korean Air is the largest carrier on the China-South Korea routes, operating over 100 more flights monthly than its nearest competitor, China Eastern Airlines [5] - Korean Air announced plans to acquire Asiana Airlines by the end of 2024, which will become a subsidiary, with the merger expected to be completed within two years [6] - Post-merger, the combined fleet will exceed 200 aircraft, serving 24 cities in China and operating 33 routes, making it the largest foreign airline group in terms of flights to China [6] Group 5 - The merger of Korean Air and Asiana Airlines is expected to have a significant impact on international routes, particularly as South Korea serves as a major transit hub for Chinese travelers heading to Europe and the U.S. [8] - Korean Air's market share on U.S. routes has increased significantly compared to pre-pandemic levels, attracting more transfer passengers due to high direct flight prices [8] - In efforts to attract more transit passengers, Incheon International Airport offers free transit lounges and city tours, while Korean Air has upgraded its airport lounges and in-flight meals [8]