Hanjin Group in Talks with Korea Development Bank

Hanjin Group is reportedly in talks with Korea Development Bank (KDB) to acquire Asiana Airlines.

Korean Air is reportedly considering acquiring Asiana Airlines. Hanjin Group, the parent of Korean Air, is negotiating with Korea Development Bank (KDB), the main creditor of Asiana Airlines, to acquire the struggling airline.

Industry insiders offer the scenario of KDB providing funds to Hanjin KAL, the holding company of Hanjin Group, in the form of participating in a capital increase to facilitate the group’s acquisition of a 30.77 percent stake in Asiana Airlines.

Korean Air is managing to stay afloat amid the COVID-19 crisis by converting passenger planes into cargo planes. But its financial structure has deteriorated, putting Hanjin Group as a whole into a liquidity crisis. Currently, Asiana Airlines is under the management of KDB-led creditors after HDC Hyundai Industrial Development’s takeover attempt fell through.

Korean Air plans to submit a letter of intent on the takeover of Asiana Airlines as early as next week. Regarding the deal, an acquisition method will be finalized next week through a meeting of ministers related to sharpening industrial competitiveness.

Hanjin Group and the creditors made no comment on the matter.

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