Hanjin Group to acquire Asiana Airlines

Hanjin KAL and Korean Air have agreed to acquire Asiana Airlines for at KRW 1.8 trillion (approx. US$1.625bn. In order to secure this amount, Korean Air states that it plans to raise KRW 2.5 trillion worth of capital by issuing new shares early next year. Hanjin describes the deal between the top two airlines of Korea as “a great momentum to restructure the Korean aviation market amid the unprecedented crisis faced by the global aviation industry due to COVID-19”. According to the agreement, Hanjin KAL will receive a KRW 800 billion investment from Korea Development Bank – KRW 500 billion