"Steps Toward Management Normalization...
Continued Monitoring of the Integration"
Industrial Bank of Korea (IBK) has fully recovered the 3.6 trillion won of public funds it invested to normalize Asiana Airlines' management after six years.
IBK announced on the 25th that Asiana Airlines is scheduled to repay the remaining policy loan balance of 1.38 trillion won on the 26th.
The creditors, including IBK, the Export-Import Bank of Korea, and the Industrial Infrastructure Fund, have recovered all the policy funds invested in the normalization of Asiana Airlines.
The creditors injected 3.6 trillion won of public funds into Asiana Airlines over two years from 2019 to 2020. IBK provided 2.37 trillion won, the Export-Import Bank 930 billion won, and the Industrial Infrastructure Fund contributed 300 billion won.
The Industrial Infrastructure Fund is a fund established by IBK to support national key industries that suffered difficulties due to COVID-19.
IBK explained that this repayment is due to the improvement of Asiana's financial structure and credit rating following the completion of the corporate merger with Korean Air. It added that after the repayment, Asiana is expected to proceed with the process of management normalization as a subsidiary of Korean Air.
An IBK official said, "Through the Korean Air-Asiana corporate merger, we have fully recovered the support funds and taken the first step toward employment stability and enhancing the competitiveness of the domestic aviation industry." He added, "We will continue to monitor key issues related to the integration going forward."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
