Do Gyu-sang, Vice Chairman of the Financial Services Commission, is speaking at the Financial Risk Response Team meeting held via video on the 26th. (Photo by Financial Services Commission)
[Asia Economy Reporter Kim Hyo-jin] Do Kyu-sang, Vice Chairman of the Financial Services Commission, stated on the 26th that the merger between Korean Air and Asiana Airlines is expected to contribute to enhancing the competitiveness of the aviation industry.
Vice Chairman Do made these remarks during a video conference of the Financial Risk Response Team, noting that the novel coronavirus disease (COVID-19) has had a severe impact on the aviation industry, which is a key sector.
He explained, "As concerns grow over the prolonged normalization of the aviation industry, the merger of the two airlines is being pursued to ensure the survival of the sector." He anticipated that if the restructuring proceeds swiftly and efficiently, it would help preserve numerous jobs, including approximately 37,000 employees of the two airlines and their affiliates, as well as about 60,000 workers in aviation-related partner companies.
Regarding some concerns about the investment structure, he said, "I understand this is an inevitable choice to prevent nationalization and to achieve early normalization of the domestic aviation industry through efficient management." He emphasized, "During the merger process, transparent and sound management must be ensured to protect jobs and consumer benefits."
Meanwhile, Vice Chairman Do pointed out that, amid the increase in household loans, market liquidity has flowed into the stock and real estate markets, and more recently, into virtual assets.
He added, "While managing household loan growth soundly to prevent it from becoming a risk factor for our economy, we will closely monitor risk factors in the asset market, such as trends of funds flowing into high-risk assets."
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