Virus-hit Korean Air and Asiana offered $2bn bailout

Aid from state-backed banks to protect jobs at South Korean carriers

Korean Air and Asiana have relied heavily on international demand, but with the pandemic driving countries to restrict inbound travel, the two carriers slashed 90% of their flights. © Yonhap/Kyodo

KOTARO HOSOKAWA, Nikkei staff writer

April 25, 2020 09:48 JST

SEOUL -- State-backed lenders in South Korea will extend 2.9 trillion won ($2.35 billion) in aid for Korean Air Lines and Asiana Airlines to keep the major carriers aloft and safeguard jobs as the pandemic decimates travel demand.

The assistance from the Korea Development Bank and the Export-Import Bank of Korea is also aimed at keeping the nation's transportation infrastructure intact.