About
AirAsia Korea was a proposed venture by AirAsia Group to establish a new South Korean subsidiary. AirAsia filed an application with several investor in 2013, with plans of launching domestic and international flights from an unspecified base. AirAsia Group said it plans to hold a 25% stake in the start-up, as foreign investment restrictions in South Korea means AirAsia will not be able to hold more than 50% stake in the carrier. However, in 2014 South Korea MLIT introduced a decree prohibiting local carriers to develop low-cost ventures with foreign investors. The new law blocked AirAsia's proposed affiliate and effectively terminated negotiations.
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