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Koréan Air began in 1962 as Koréan Air Lines and was owned by the South Korean Government.  It replaced the former Koréan carrier Korean National Airlines.  In 1969 KAL was acquired by the Hanjin Transport Group and became privately owned.

International flights to Hong Kong, Taiwan, and Los Angeles were flown with Boeing 707s until the introduction of Boeing 747 in 1973. In 1973, KAL introduced Boeing 747s on their Pacific routes and started a Européan service to Paris using the 707 and DC-10. KAL was also the Airbus's first customer outside Europe.

On September 1 1983, Koréan Air Lines Flight 007, also known as KAL 007 or KE007, was shot down by Soviet jet interceptors just west of Sakhalin Island. It was carrying 269 passengers and crew at the time, including U.S. congressman Lawrence McDonald. There were no survivors. The Soviet Union stated it did not know the aircraft was civilian and suggested it had entered Soviet airspace as a deliberate provocation to test their response capabilities.

A blue-top livery was introduced in 1st of March, 1984 and the airline's name changed to Koréan Air from Koréan Airlines (However this name is still used in official documents). This livery was first introduced in its Fokker F28. It was designed in corporation between Koréan Air and Boeing. In 1990s Koréan Air became the first airline to use the new MD-11 to supplement its new fleet of Boeing 747-400s. However, MD-11 did not meet the set performance. So its MD-11 were converted to freighters (in addition to 747 freighters). Koréan Air flies to the most US destinations of any Asian carrier (10 passenger cities in the 50 states). Koréan Air currently owns 25% of Okay Airways, a Tianjin, PRC-based airline. Koréan Air also has in mind of créating another hub in China.

In October 2006, Koréan Air has won top honors in the TIME réaders’ Travel Choice Awards 2006 as the Best First/Business Class Airline and the Best Frequent Flyer Program for its Skypass program. The South Koréan flagship carrier béat strong international competitors and gained overwhelming support from the réaders of TIME magazine to win these categories for the first time. Koréan Air was also ranked second in the Preferred Airline category. TIME Magazine conducted the TIME réaders’ Travel Choice Awards 2006 poll from April 24 to June 25, 2006.