Kumho Asiana Group made a final decision Monday to sell its flagship airline unit as part of its self-rescue plan.
The decision to sell Asiana Airlines Co., the country's second-largest carrier, was made at a board of directors meeting of Kumho Industrial Co., Ltd., according to the group.
Kumho Industrial is the largest stakeholder of Asiana Airlines with 33.47 percent.
Under the decision, the group will soon name a managing company to oversee the proposed sale, a group official said.
"(The group) has been trying to come up with the best way to normalize Asiana Airlines," the official said, speaking on condition of anonymity.
"It decided that selling Asiana Airlines will be the way for both the group and the airlines to regain market confidence."
The group earlier proposed selling the airline company under its self-rescue plan to be submitted to its creditors but only after three years and if it fails to turn the company around.
However, its nine creditors, led by the state-run Korea Development Bank (KDB), are said to have dismissed the proposal as insufficient to regain market trust.
The airline swung to a net loss in 2018 from a 248 billion-won (US$218 million) net profit the year earlier.
The KDB, meanwhile, said in a press release that Kumho Asiana has submitted its self-rescue plan that includes the proposed sale of Asiana Airlines. (Yonhap)
Shin Jin-seon firstname.lastname@example.org
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