This article was published on June 30, 2025, at 4:38 p.m. on the ChosunBiz MoneyMove site.
Daemyung Sono Group is contemplating methods and scales of financial support after completing the acquisition of T’way Air. T’way Air, facing financial pressure due to consecutive losses, needs capital injection, but relying solely on a paid-in capital increase may not suffice.
According to investment banking (IB) industry sources on the 30th, Daemyung Sono Group is reviewing a financial support plan for T’way Air, including a paid-in capital increase. If Daemyung Sono Group participates in the paid-in capital increase and acquires new shares at a price higher than the par value (500 won), T’way Air can reserve the amount exceeding the par value (stock issuance surplus) to cover its deficit.
T’way Air is struggling with financial pressure due to accumulated deficits. According to the Financial Supervisory Service's electronic disclosure system, T’way Air's deficit was recorded at 117.7 billion won in the first quarter of this year, an increase of 48.4 billion won compared to the end of last year. A deficit refers to a situation where a corporation's expenditures exceed its earned income.
T’way Air is expected to continue its losing streak this year, leading to an increase in deficits. In just the first quarter, T’way Air posted a quarterly net loss of 44.8 billion won. Financial research firm FnGuide estimates that the annual net loss for 2025 will be 65.1 billion won.
The most likely financial support option being discussed is a rights offering for shareholders. However, there are concerns that even with a rights offering, T’way Air may not be able to raise all the funds it needs. The industry estimates that T’way Air requires at least 300 billion won, while its market capitalization is only 440 billion won. A low market capitalization could lead to significant stock price shocks during large-scale capital increases, which may be burdensome.
For this reason, some expect that a portion of the rights offering for shareholders will be supplemented by the major shareholder through a third-party allocation method. However, Daemyung Sono Group currently does not have significant financial leverage. This is because the group's main entity, Sono International, is set to go public. Once Sono International completes its listing at a valuation of 3 to 4 trillion won, significant investments are expected to follow.
Jeong Yeon-seung, an analyst at NH Investment & Securities, noted, "If T’way Air is incorporated into Daemyung Sono Group, capital and liquidity enhancements will likely be pursued for route expansion and fleet operation growth," adding, "After capital enhancement, it is necessary to improve profitability through stabilizing long-haul routes and enhancing workforce efficiency."
After completing financial support for T’way Air, Daemyung Sono Group is expected to move towards reorganizing its governance structure. Sono International holds 46.26% of Tway Holdings, which in turn owns 28.02% of T’way Air. Additionally, Sono International and Sono Square together own 26.77% of T’way Air, giving Daemyung Sono Group an effective ownership stake of about 55% in T’way Air.
A representative of Daemyung Sono Group said, "There are no confirmed details, so I cannot provide any information."
Meanwhile, the new name for T’way Air is expected to be chosen from recent trademark applications by Daemyung Sono Group, including 'Sono Air', 'Sono Airline', and others. Previously, Sono International began acquiring shares of T’way Air in June last year and established a stock purchase agreement in February to buy all shares of Tway Holdings owned by its former largest shareholder YeaRimDang and the YeaRimDang owner's family for 25 billion won, securing management control of T’way Air.