JejuAir repays $49.5 mn in loans amid industry recovery

JejuAir

South Korea’s budget airline JejuAir Co., which had received policy funds for financial stability during the pandemic, has commenced repayment procedures since the end of last year.

The move is seen as a forward-looking approach in stabilizing its financial structure as the travel industry started regaining its footing.

According to sources on Monday, JejuAir repaid about 65 billion won ($49.5 million) of the funds secured from KDB and the Basic Industry Stability Fund in December last year.

On December 28, the company fully repaid 40 billion won worth of convertible bonds held by the bank and around 25 billion won to the fund.

Between 2020 and 2021, the airline had received support in the form of CBs and loans from KDB and the fund, amounting to 40 billion won and 182 billion won, respectively, aimed at restructuring its financial framework.

About 150 billion won remaining from the fund is expected to be repaid gradually this year.

The Basic Industry Stability Fund is a policy fund created by the government worth 40 trillion won to support fundamental industries experiencing financial difficulties due to Covid-19. The fund operates with KDB lending funds to companies that maintain a certain level of total employment, while the government provides guarantees for these loans.