Korean Air to decide up to $820 million rights issue this week: Yonhap

FILE PHOTO: Korean Air's passenger planes are parked on the tarmac as overseas flight routes are reduced following the outbreak of coronavirus disease (COVID-19), at Incheon International Airport in Incheon, South Korea, March 24, 2020. REUTERS/Heo Ran

SEOUL (Reuters) - South Korea's largest airline Korean Air 003490.KS will decide whether to sell up to about 1 trillion won ($820.24 million) in shares in a board meeting on Wednesday, Yonhap said on Monday, as finances come under strain from the coronavirus pandemic.

Korean Air’s board is expected to decide on the rights issue, in which stocks will likely be first allocated to the carrier’s shareholders, followed by general public, Yonhap news agency reported, citing unidentified sources in the aviation industry.

A source confirmed that Korean Air is holding a board meeting on Wednesday.

Korean Air declined to comment.

State-owned banks in South Korea said last month they would provide up to 1.2 trillion won in liquidity to support Korean Air.

Reporting by Joyce Lee; Editing by Kim Coghill