ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more