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Business deals

Korean Air to take over Asiana in $1.62bn deal backed by Seoul

Government will inject $700m to help two carriers hit by pandemic

SEOUL -- Korean Air Lines says it will take over smaller rival Asiana Airlines in a government-backed deal aimed at helping the country's two largest carriers survive the coronavirus pandemic.

On Monday, KAL announced that it will buy 1.5 trillion won ($1.35 billion) worth of new shares in Asiana and 300 billion won of its corporate bonds, giving it a 63.9% stake in the smaller airline. To fund the move, KAL will raise 2.5 trillion won from its shareholders, including 730 billion won from its parent company Hanjin KAL.

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