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Photo = Jeju Air |
[Alpha Biz= Kim Jisun] Seoul, June 3 – South Korea's Aekyung Group has effectively pledged nearly all of its stake in Jeju Air Co., Ltd. (089590) as collateral for additional loans, raising concerns about its grip on the low-cost carrier amid sluggish stock performance and ongoing financial restructuring efforts.
According to investment banking sources, AK Holdings (006840), the holding company of Aekyung Group, secured ₩50 billion (approx. $36 million) in a stock-collateralized loan from Shinhan Capital on May 28. The collateral includes 8.93% of Jeju Air and 4.43% of Aekyung Industrial (018250) shares. The loan carries an annual interest rate of 5.9% and is due by May 28, 2026, with a 120% collateral maintenance ratio.
As of the end of March 2024, Aekyung Group holds a 53.61% stake in Jeju Air, primarily through AK Holdings (50.37%), Aekyung Asset Management (3.22%), and four executives (0.01%). With the latest loan, nearly 50% of this stake has been pledged, leaving only 3.61% unencumbered.
To date, Aekyung has raised ₩260.8 billion through stock-backed loans using Jeju Air shares as collateral. This figure represents about half of Jeju Air’s current market capitalization, which stood at ₩533 billion based on the June 2 closing price.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
