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  • ​Seoul mandates massive credit package for Asiana

​Seoul mandates massive credit package for Asiana

Asiana Airlines appears set to receive a liquidity injection of W1.6 trillion ($1.4 billion) from creditors, led by state-run Korea Development Bank (KDB).

Korea’s Ministry of Economy and Finance confirms that creditors plan to buy W500 billion in Asiana perpetual bonds, and extend the embattled carrier a KRW800 billion credit line.

Plans appear to be at a preliminary stage. It is not yet clear where the additional W300 billion will come from.

The airline initially declined to comment on the news.

The ministry’s announcement follows news on 15 April that Kumho Industrial will sell its 33% stake in Asiana Airlines as it seeks to shore up its finances.

The sale decision was made by Kumho’s board on 15 April, a stock exchange disclosure stated, but no timeline for the sale nor the likely price were set.

Kumho Industrial is the holding company of the Kumho Asiana Group, which has been seeking around W500 billion in emergency loans from KDB its largest creditor.

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