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KDB to Inject 800 Bln Won for KAL's Acquisition of Asiana

Written: 2020-11-16 11:16:28Updated: 2020-11-16 12:10:33

KDB to Inject 800 Bln Won for KAL's Acquisition of Asiana

Photo : YONHAP News

The Korea Development Bank(KDB) will inject 800 billion won for the acquisition of Asiana Airlines by Korean Air(KAL). 

The government reached the decision on Monday during a meeting of related ministers on ways to stabilize operations of the nation’s second-largest carrier. 

The KDB, which is the main creditor of Asiana Airlines, plans to inject 500 billion won into Hanjin KAL, the holding company of Hanjin Group, via a third-party allotment and acquire 300 billion won in exchangeable bonds. 

KAL is aiming to increase its capital by issuing new stocks worth up to two-point-five trillion won.

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