SEOUL, Oct. 18 (Yonhap) — South Korea’s prime full service service Korean Air Traces Co. is searching for to lift an extra 1.5 trillion received (US$1.three billion) in money to beat a protracted, industrywide hunch amid the pandemic, business sources stated Sunday.
Korean Air plans to promote loads of land in downtown Seoul to the Seoul metropolis authorities for at the least 500 billion received and get a subsidy of 1 trillion received from the federal government inside this yr.
Korean Air has been in negotiations with town authorities to promote its land in Gwanghwamun, central Seoul, however has did not slim a worth distinction.
Korean Air desires to promote the land for at the least 500 billion received, whereas town authorities set the land worth at 467 billion received, proposing paying in installments till 2022.
The total service service has been in talks with the state-run Korea Improvement Financial institution (KDB) to safe 1 trillion received in money underneath the federal government monetary help program for key industries.
In Might, South Korea launched a fund price 40 trillion received to supply monetary help to the nation’s spine industries, together with the airline service sector, amid the financial fallout of the brand new coronavirus.
As a part of efforts to lift money, Korean Air has been additionally pushing to promote a stake in its wholly owned Hanjin Worldwide Co., which operates Wilshire Grand Middle, a skyscraper in Los Angeles.
Earlier, Korean Air raised 1.12 trillion received this yr by promoting its in-flight meal and in-flight responsibility free gross sales divisions and promoting new shares.
KDB and Export-Import Financial institution of Korea (Exim Financial institution) requested Korean Air to safe 2 trillion received by the top of 2021 on the situation of offering emergency funds price 1.2 trillion received in April.
As well as, Korean Air’s debt to repay within the fourth quarter reached about 1.2 trillion received.
Such a monetary scenario drove Korean Air to shortly safe money regardless of sturdy earnings within the second quarter and a optimistic outlook for the third quarter on the again of an increase in air cargo, market watchers added.