À̹ÌÁö È®´ë [Photo by Financial Services Commission]
Public fund to defend South Korea¡¯s key industries during COVID-19 hard times may inject additional relief into low-cost carriers, but won¡¯t help out SsangYong Motor unless creditors ask first, said Financial Services Commission (FSC) Chairman Eun Sung-soo.
¡°We have already provided rescue funds to LCC segement,, but could extend more when deemed necessary,¡± Eun told reporters on Thursday after installing a 40-trillion won fund to support key industries at state policy lender Korea Development Bank (KDB).
The government has so far offered 145.3 billion won ($117.2 million) worth relief to the budget airlines through 300 billion won worth program under the KDB. It plans to back 170 billion won to Jeju Air, the biggest Korean LCCs, to help it go forward with its plan to acquire fellow carrier Eastar Jet.
Regarding the rescue plan for troubled carmaker SsangYong Motor, he said it is up to creditors to have talks with the Korean government or make decisions on their own. The company is under ownership of India¡¯s Mahindra & Mahindra Ltd.
The financial authority on Friday will deliberate whether to hand out additional funding to Doosan Heavy Industries & Construction after reviewing a group-wide fund-raising and rescue scheme.
Separately, a committee comprising of state-run KDB and Export-Import Bank of Korea, commercial lenders and securities companies on Thursday approved a plan to buy bonds from Doosan Infracore, the heavy equipment maker of Doosan Group, to help it repay 30 billion won worth maturing next month.
Under the plan, the KDB will buy 80 percent of new debts issued by the company to help it pay off the existing debt.
By Choi Seung-jin and Choi Mira
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]