South Korea's corporate watchdog is considering launching an investigation into allegations that Asiana Airlines Inc., the country's second-largest air carrier, forced one of its suppliers to buy bonds issued by its holding company, industry sources said Monday.
LSG Sky Chefs Korea Co., a local unit of the world's leading provider of in-flight catering services, has reported the case to the Fair Trade Commission (FTC), saying that Asiana demanded the company buy some 160 billion won worth of bonds with warrants (BW) by Kumho & Co. Inc., according to the sources.
It also claimed that Asiana signed a new deal with a Chinese company as the company rejected the offer.
LGS Sky Chefs had provided airline food services to the South Korean air carrier since 2003.
The FTC is reviewing the report by LSG Sky Chefs Korea.