As Jeju Air eventually abandoned the acquisition of Istar Air, it became a job that the government-owned banks did not have to finance the acquisition of 170 billion won to support Jeju Air.

According to the financial sector, the initial plan was that if Jeju Air acquired Istar Air, the Industrial Bank and the Export-Import Bank would support KRW 100 billion and KRW 70 billion, respectively.

The two banks tried to apply in the form of syndicated loans (jointly financed by multiple financial institutions) with other commercial banks, but none of them had indicated their willingness to apply.

Eventually, I decided to apply only for silver and mercury, but even this was unsuccessful.

This is because Jeju Air officially abandoned the acquisition of Eastar Airlines today (23rd).

An official from the Bank of Korea said, "The 170 billion won we wanted to apply to Jeju Air with mercury was planned on the condition of acquiring Easta Air."

I am interested in whether Jeju Air will be able to receive support in the form of a key industry stabilization fund, etc. as the financial support of the government-owned banks becomes bankrupt.

The Term Industry Stabilization Fund uses the aviation industry as a support industry.

In addition, Jeju Air satisfies the total borrowings of more than 500 billion won and more than 300 workers.

However, it is a variable that the government is drawing a line to support low-cost airlines (LCC) as a key industry stabilization fund.

In the case of the LCC, the government's position is that support through the public welfare and financial stability package program (KRW 135 trillion + α) is the priority.

Eastar Airlines is unable to recover on its own, and will likely go through bankruptcy.

It is also difficult for the banks to provide support, as silver and mercury are also not at ESTA Air's bond banks.

An official from Saneun said, "There has been no loan out because it has been a while since ISTA Air is in a capital lapse."

(Photo = Yonhap News)