Korean Air Sells Wangsan Leisure Development for 130 Billion Won

[Asia Economy Reporter Yu Je-hoon] Korean Air is selling its subsidiary Wangsang Leisure Development to secure liquidity amid the COVID-19 pandemic.

According to the industry on the 30th, Korean Air signed a memorandum of understanding (MOU) with Kansas and Mirae Asset Daewoo in mid-this month for the sale of Wangsang Leisure Development. Wangsang Leisure Development is a wholly owned subsidiary of Korean Air, and the sale price amounts to 130 billion KRW.

Korean Air previously sold its in-flight meal business and in-flight duty-free sales business to Hahn & Company for 990.6 billion KRW and also secured 1.127 trillion KRW through a paid-in capital increase. In addition, Korean Air plans to enhance liquidity by selling idle assets such as employee housing in Jeju worth approximately 41.9 billion KRW.

With this, the remaining asset sales plans Korean Air has been pursuing since COVID-19 are ▲Jongno Songhyeon-dong site ▲hotel assets (including Jeju Paradise Hotel). Among these, the Jongno Songhyeon-dong site has reached significant consensus with the Seoul Metropolitan Government through mediation by the Anti-Corruption and Civil Rights Commission, but the final agreement has been delayed due to last-minute contract wording adjustments by the city authorities.