The head of South Korea’s financial watchdog has responded positively to Kumho Asiana Group’s decision to sell the country’s second largest airline. 

Financial Services Commission Chairman Choi Jong-ku told reporters on Monday that he thinks the cash-strapped group’s decision to sell Asiana Airlines as part of its restructuring plan will draw positive assessments from its creditors. 

He predicted the process of selling the carrier will begin with a memorandum of understanding once the creditors accept the decision. However, he said the process will take at least several months to complete given the size of the group's airline unit. 

Choi refused to comment on what the group's main creditor Korea Development Bank will do in return, including the possibility of the group’s debts being converted into equity, saying he needs to wait until the group and its creditors reach an agreement.