Asiana Airlines announced on the 26th that it has fully repaid 3.6 trillion won in policy funds borrowed from the Korea Development Bank and Export-Import Bank after six years.
The funds consisted of 1.6 trillion won in financial support agreements made in 2019 on the condition of the acquisition and merger (M&A) of Asiana Airlines, 1.7 trillion won supplied due to liquidity shortages caused by the coronavirus disease (COVID-19) pandemic in 2020, and 300 billion won from the Period Industry Stabilization Fund.
Asiana Airlines repaid 1.12 trillion won through self-help efforts such as management improvement and labor pain-sharing by 2023. Last year, it completed a corporate merger with Korean Air, using the cash injection from new shares issued to repay 1.1 trillion won, and recently raised funds in the financial market to repay the remaining loans of 1.38 trillion won.
An official from Asiana Airlines noted, “It is the first time since 2015 that the company has obtained funds through credit in the financial market,” adding, “We will continue our efforts to improve our credit rating through an improved financial structure and strengthened operational capabilities.”