Draft Fund No. 2 Company 'Jeju Air'... Expected to Receive 170 Billion Won Support

Jeju Air 'Incheon to Incheon' sightseeing flight passengers wave their hands before boarding the B737-800NG aircraft at Incheon International Airport Terminal 1 on the 23rd. On this day, Jeju Air conducted a sightseeing flight for the general public that circled over domestic airspace before returning. / Photo by Moon Honam munonam@

[Asia Economy Reporter Kangwook Cho] Jeju Air is expected to become the second company to receive support from the Period Industry Stabilization Fund. The support amount is expected to be around 170 billion KRW.

According to the financial sector on the 26th, the Operation Deliberation Committee of the Stabilization Fund plans to hold a meeting on the 29th to discuss support measures for Jeju Air.

The Export-Import Bank, the main creditor bank, is known to have calculated the required funds as 170 billion KRW through an audit by an accounting firm.

If Jeju Air receives support from the Stabilization Fund, it will become the second supported company following Asiana Airlines. It will be the first supported company among low-cost carriers (LCCs). Among LCCs, only Jeju Air and Air Busan meet the business scale requirements to apply for the Stabilization Fund support.

To apply for the Stabilization Fund, conditions such as having more than 300 employees and total borrowings exceeding 500 billion KRW must be met. In the first half of the year, Jeju Air had 2,744 employees and total borrowings of 655.5 billion KRW (including lease liabilities).

However, Jeju Air has not yet applied for support from the Stabilization Fund. It is currently negotiating detailed matters with the creditors, and the application process is expected to proceed once these are finalized.

Korean Air is also preparing to apply for the fund. The support amount is expected to be around 1 trillion KRW.

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