Industrial Bank of Korea Provides Additional 70 Billion KRW Support to LCC Airlines

Total Support of 126 Billion KRW from the 3rd to Present
Additional Support for Air Busan and T'way Air Scheduled Next Month
Plan to Provide 150-200 Billion KRW for Acquisition of Eastar Jet

[Asia Economy Reporter Kangwook Cho] The Korea Development Bank announced on the 31st that it has provided an additional 70 billion KRW in unsecured loans to support low-cost carriers (LCCs) struggling with deteriorating business conditions due to the COVID-19 pandemic.

With this additional support, 40 billion KRW was supplied to Jeju Air and 30 billion KRW to Jin Air as operating funds.

Since holding a meeting with LCC airlines and their main banks on the 3rd of this month, the total amount supported by the bank has reached 126 billion KRW. Previously, the bank provided 6 billion KRW to T'way Air, 20 billion KRW to Air Seoul, and 30 billion KRW to Air Busan.

Additionally, next month, the bank plans to provide up to 28 billion KRW to Air Busan through Asiana Airlines and will also offer additional support to T'way Air. Regarding Jeju Air's acquisition funds for Eastar Jet, the bank plans to jointly provide 150 billion to 200 billion KRW with other banks in April, after the Fair Trade Commission completes its corporate merger review.

The Korea Development Bank stated, "As international travel restrictions continue, we will do our best to provide prompt financial support to help LCC airlines, which are the first to be hit, overcome their difficulties."