Chairman Lee Dong-geol: "Jeju Air Considering Support from Kian Fund... Eastar Air Not Eligible"

On the 23rd, when Jeju Air announced the termination of the stock purchase agreement for acquiring management rights of Eastar Jet, effectively giving up the acquisition, a sense of silence prevailed at Eastar Jet's headquarters in Gangseo-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kangwook Jo] Lee Dong-geol, chairman of the Korea Development Bank, hinted on the 28th at the possibility of injecting the Industrial Stabilization Fund into some low-cost carriers (LCCs) including Jeju Air.

At an online press conference held that day, Chairman Lee said, "Since the situations of individual LCC companies vary, support through policy finance is desirable," adding, "Jeju Air and Air Busan meet the requirements for Industrial Stabilization Fund support."

However, he stated that Air Busan, a subsidiary of Asiana Airlines, will be reviewed again later as it is related to the Asiana restructuring plan.

He said that Jeju Air's request for fund support will be reviewed for possible assistance.

Regarding Eastar Jet, he gave a firm negative response.

Chairman Lee said, "Eastar Jet has been in a state of complete capital erosion even before COVID-19, making direct support difficult," and added, "It is judged that Eastar Jet does not meet the requirements for Industrial Stabilization Fund support."