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Jeju Air to raise W127b via stock sale for post-pandemic biz

Jeju Air Co., South Korea's biggest budget carrier, said Thursday it will raise 127 billion won ($107 million) by selling stocks in preparation for the post-coronavirus era. 

Jeju Air plans to issue 11.26 million shares at 18,350 won per share to employees and existing shareholders from Oct. 18-19 and list the stocks on the main Korea Exchange (KRX) on Nov. 19, the company said in a regulatory filing.

"The planned rights issue is to secure operating capital as the country aims to gradually shift to a phase of 'living with COVID-19' from mid-November," a company spokesman said.

Under the "With Corona" scheme, COVID-19 is treated as an infectious respiratory disease, like seasonal influenza, with eased distancing being implemented.

In June, Jeju Air resumed flights to Saipan in a preemptive measure to absorb post-pandemic travel demand.

The low-cost carrier has suspended most of its flights on international routes since early last year due to countries' entry restrictions.

Currently, international flights to six cities -- Saipan, Tokyo, Osaka, Weihai, Harbin and Manila -- are available for business travel and Koreans residing in the cities. (Yonhap)