Asiana Airlines Decides to Increase Short-Term Borrowings by 300 Billion KRW

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] Asiana Airlines announced on the 7th that it has decided to increase its short-term borrowings by 300 billion KRW. This amount corresponds to 33.03% of Asiana Airlines' equity capital.

The purpose of this borrowing is for debt repayment and operating funds, and the borrowing type is a credit line. Asiana Airlines explained, "This disclosure is related to the board resolution on the exclusive use of credit lines for foreign currency payment guarantees from the Korea Development Bank and import performance guarantees from the Export-Import Bank of Korea," adding, "2.152 trillion KRW from the Korea Development Bank and 848 billion KRW from the Export-Import Bank."

Last year, the Korea Development Bank and the Export-Import Bank supported Asiana Airlines with 500 billion KRW in perpetual bonds, 800 billion KRW in credit lines, and 300 billion KRW in standby letters of credit (guarantee letters of credit). Among these, the 800 billion KRW credit line has been fully drawn.

The amount Asiana Airlines decided to borrow through this disclosure is the remaining 300 billion KRW intended for the standby LC. An Asiana Airlines official stated, "This disclosure is about changing the use of a 300 billion KRW letter of credit to a credit line loan," adding, "The timing of using the 300 billion KRW is undecided, and only the purpose has been changed; no additional support has occurred."

This content was produced with the assistance of AI translation services.