KDB recoups $2.5b fund as Asiana normalizes

South Korea’s policy lender Korea Development Bank (KDB) announced on Tuesday that it plans to recover the remaining policy loan of 1.38t won ($963m) from Asiana Airlines Wednesday. With this repayment, creditors including KDB, the Export-Import Bank of Korea, and the Key Industry Stabilization Fund, will have fully recovered the 3.6t won in policy funds injected to normalize Asiana Airlines. The repayment follows improvements in Asiana’s financial structure and credit rating after its merger with Korean Air Lines Co. Asiana is expected to proceed with management normalization as a subsidiary of Korean Air. “With the full recovery of the support funds provided to Asiana, KDB has taken a key step toward job stability and strengthening the aviation industry’s competitiveness,” said a KDB official.<br/>