SEOUL, KOREA - Korean Airlines announced on December 19 that it will secure 3.5 trillion won by selling its major assets, including its stake in S-Oil, aged airplanes, and real estate. Korean Air plans to secure 2.2 trillion won by selling Hanjin Energy’s 30 million shares of S-Oil.
In addition, Korean Air will procure 250 billion won by selling 13 aged aircraft and 1.04 trillion won by selling real estate and investment assets. With these asset sales, Korean Air aims to reduce its debt-to-equity ratio to 400 percent by 2015 from the current 800 percent.
Korean Air also plans to provide additional support to Hanjin Shipping within the value of collateral, aimed at helping the latter get out of its liquidity crisis. Korean Air, accordingly, will participate in Hanjin Shipping’s capital increase, slated within the first half of next year, within the limit of 400 billion won.