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31 July


South Korean govermnent to inject 1.6 trillion won into Asiana Airlines

But actually company shares fell Tuesday

Photo: Yonhap

/NOVOSTIVL/ The government has decided to inject 1.6 trillion won ($1.4 billion) into Asiana Airlines to provide a lifeline to the debt-ridden company, Finance Minister Hong Nam-ki said Tuesday. This article appeared in The Korea Times.

"Creditors led by the state-run Korea Development Bank (KDB) will help increase the company's capital base and resolve its liquidity problem," Hong said in an economy-related meeting in Seoul.

"They will also seek to normalize the airline by closing down unprofitable routes and selling the company within this year."

Despite the government's decision, Asiana Airlines shares fell Tuesday, closing down 490 won, or 5.97 percent, at 7,720 won.

This would be enough to cover Asiana's 60 billion won debt due this week, and short-term obligations worth over 1 trillion won this year.