Korean Air faces crisis as coronavirus worsens debt woes

Korean Air is in danger of collapse if it does not urgently address its high debt levels, one of its biggest shareholders has warned, just as the coronavirus pandemic sparks a global industry crisis. South Korea’s travel sector was one of the earliest to be hit by the coronavirus after a big outbreak in February prompted more than 100 countries to introduce travel bans or tougher entry restrictions on people travelling from Korea. That led to Korean Air slashing more than 80% of its international capacity. The company has about US$4.3b in debt maturing this year, according to Moody’s, and some investors are concerned about its ability to pay. “Given its poor financial status . . . Korean Air will be the first one to fall off the cliff” and the business not survive said the president of Korea Corporate Governance Improvement Fund. <br/>