Korea Development Bank and Creditors "Actively Support Asiana Airlines for Management Stability"

Implementation of Government-wide Normalization Measures Including New 2.4 Trillion Won Support from Kian Fund
Emergency Liquidity Support for Kumho Express Affected by COVID-19
Lee Dong-geol, KDB Chairman, Visits Asiana Airlines... Urges Shared Pain and Management Reform

[Asia Economy Reporter Kangwook Cho] The creditors, including the Korea Development Bank and the Export-Import Bank of Korea, expressed deep regret on the 11th over the collapse of the merger and acquisition (M&A) of Asiana Airlines.

The creditors announced plans to implement a government-wide normalization plan to minimize the management crisis of Asiana Airlines caused by the failed M&A and the resulting disruption of flight operations, as well as the adverse effects on the national economy.

First, the creditors decided to actively support Asiana Airlines' stable operations by providing a new credit line of 2.4 trillion KRW through the Industrial Stabilization Fund.

Under the management of the creditors, Asiana Airlines plans to continue management innovation and self-rescue plans while making its best efforts to enhance corporate value through route optimization and cost reduction.

In addition, the creditors stated that they will implement various measures to normalize and stabilize the management of Asiana Airlines, including providing emergency liquidity support to Kumho Express, which has been affected by the COVID-19 pandemic. In particular, they plan to re-pursue the sale of Asiana Airlines to a responsible and capable management entity as soon as conditions permit.

Meanwhile, Chairman Lee Dong-geol visited Asiana Airlines headquarters in the afternoon to meet with executives and employees and explained the government and creditors' determination and plans for normalization. Chairman Lee especially urged the company's executives and employees to share the pain and make efforts for management innovation and normalization.

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