Fly Gangwon to Proceed with 25 Billion KRW Paid-in Capital Increase to Secure Operating Funds

[Asia Economy Reporter Dongwoo Lee] The newly established LCC (Low-Cost Carrier) Fly Gangwon announced on the 28th that it plans to hold a board meeting next week to resolve a paid-in capital increase worth 25 billion KRW.

Fly Gangwon stated that this new share issuance aims to secure operating funds and improve financial soundness to strengthen competitiveness and diversify its business model in the post-COVID-19 era. It also plans to secure funds necessary for the introduction of medium-sized aircraft.

A Fly Gangwon official explained, “We have started consultations with the Korea Securities Depository, the registrar of Fly Gangwon, to establish the schedule for the paid-in capital increase, and we are proceeding by preparing a plan for existing shareholders and the largest shareholder to raise funds to participate in the capital increase.”

The subscription and payment procedures for this paid-in capital increase will be completed next month, and any forfeited shares will be fully acquired by CEO Juwon Seok in March. It is expected that Fly Gangwon’s business will gain considerable momentum from March, when this capital increase is finalized.

In particular, Gangwon Province has reflected 6 billion KRW in its budget as an operational incentive fund to support Fly Gangwon, so if this capital increase is successfully completed, Fly Gangwon is expected to secure operating funds through the second quarter of next year.

Fly Gangwon is known to be preparing to secure competitiveness for the future market through proactive preparation of a diversified business model by promoting the introduction of medium-sized aircraft for mid- to long-distance routes after COVID-19.

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