State relief to Jeju Air delayed by the mega M&A of full-service carriers

A state rescue for South Korea’s biggest low-cost carrier Jeju Air has been pushed to early next year due to the key state lender’s engagement over the mega-merger of the country’s two full-service airliners. State-run Export-Import Bank of Korea (Korea Eximbank) and Korea Credit Guarantee Fund have expedited their share for Jeju Air last month – 120b won in loans and 30b won in bond purchase via the primary collateralized bond obligation program. The commitment of 40b won ($37m) from the Korea Development Bank (KDB), however, is being delayed. KDB manages the state fund committed to protect the country’s mainstay industries from the pandemic fallout. It was to approve the loan last month, but the bank has been preoccupied with the merger of Korean Air Lines and Asiana Airlines. The funding for Jeju Air will likely come next month.<br/>