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Korean Air to get up to 1.2t won support from state-owned banks
[SEOUL] Two state-owned banks in South Korea said on Friday they would provide up to 1.2 trillion won (S$1.38 million) in liquidity to support Korean Air Lines Co, as the aviation industry reels from the coronavirus crisis.
The country's biggest carrier has been hit hard by the pandemic as it struggles to deal with plummeting passenger demand.
Korea Development Bank (KDB) and Export-Import Bank of Korea will provide the liquidity in the form of loans, a Korean Air official confirmed.
Earlier this month Korean Air said 70 per cent or more of its employees working in South Korea would take a six-month leave of absence as part of the carrier's efforts to overcome operational difficulties resulting from the coronavirus pandemic.
The banks' move follows their decision to provide up to 1.7 trillion won in fresh liquidity to the country's second-largest carrier, Asiana Airlines, earlier this week.
The transport ministry, financial regulator and state-run Korea Development Bank had also announced, in February, that they would extend up to 300 billion won of liquidity to domestic budget carriers because of the crisis.