Jeju Air's financial trouble spreads to Aekyung Group

Jeju Air's growing financial trouble is spreading to its parent firm Aekyung Group as it continues to bleed funds, according to industry officials Monday. AK Holdings, the holding company of Aekyung Group with a 51.06 percent stake, has been seeing its finances deteriorate as it continues to inject capital into Jeju Air, which has been devastated by increasing losses due to the COVID-19 pandemic. The budget airline, which has been experiencing a liquidity crisis, decided to issue a paid-in capital increase worth 320b won ($237m), with support from Aekyung Group and general shareholders. Since 2020 the group has made continuous paid-in capital increases adding up to nearly 700b won. According to the Financial Supervisory Service, Monday, Jeju Air will proceed with a capital increase of 320b won in November. The company, which carried out a capital increase of 158.4b won in July 2020 and 206.6b won last October, will receive a total of 683b won from shareholders through November. "The funds secured through the capital increase are planned to be used as facility funds, such as the introduction of next-generation aircraft," a Jeju Air official said.<br/>