Jeju Air sees the fast-growing Asian low-cost carriers (LCCs) as its biggest competitive threats in the near term.
Chief executive Choi Kyu Nam says that the independently-owned carrier does not worry too much about competition from national carriers Korean Air Lines and Asiana Airlines, and adds that it has managed to hold its own against their LCC offshoots, Jin Air and Air Busan.
"Our biggest concern is [the] more established and well-operated LCCs coming from overseas - AirAsia, Peach, Jetstar eventually, and Tiger," says Choi.
"We understand that they are all coming into the South Korean market one way or another, it's just a timing issue."
Japanese carrier Peach flies from Osaka to Seoul Incheon three times daily, competing directly against Jeju's daily service on the route. In September, Peach will also commence services on the Osaka-Busan route, which is not served by Jeju.
So far, the AirAsia group's only presence in South Korea is AirAsia X, which flies a daily Kuala Lumpur-Seoul Incheon service.
AirAsia chief executive Tony Fernandes recently ruled out the option of launching a new carrier based in South Korea, but the country could be a target for AirAsia Japan as it expands in the coming years.
Similarly, as Jetstar Japan and Jetstar Hong Kong expand in the coming years, they are likely to consider services to South Korea.
Choi says that to respond to the threat posed by the foreign LCCs, Jeju will focus on differentiating itself from its competitors, but will remain true to the LCC operating model.
"We need to enhance our brand as much as possible for when we compete face-to-face with them," he says.
"We will also stick to what we have been doing well - the great service that exceeds customer's expectations, and set the bar very high for other competing LCCs."