A bidding competition has begun to become the next owner of South Korea's second-largest air carrier Asiana Airlines.

Kumho Asiana Group, the cash-strapped airline's parent entity, and its lead sales manager Credit Suisse, received letters of intent from potential investors until Tuesday afternoon.

Along with Korean cosmetics and airline conglomerate Aekyung Group, a Mirae Asset-led consortium is confirmed to have joined the bid. 

As the second-largest shareholder of Hanjin KAL, the parent company of Korean Air, activist fund Korea Corporate Governance Improvement, known as KCGI, is also taking part in the competition, and two private equity funds(PEFs) also submitted initial bids. 

While major conglomerates, such as SK, CJ, and Hanwha, said they did not submit their respective bids for Asiana, there is still a chance they could participate in making final binding bids expected to take place no later than November. 

As part of its broad restructuring efforts, Kumho Asiana aims to sell a 31 percent stake in Asiana held by its subsidiary, Kumho Industrial Company, together with its two budget carrier units: Air Seoul, which is wholly owned by the airline, and 46-percent owned Air Busan.