Hyundai is now the newest parent company of Asiana Airlines, from South Korea, which is going through a period of financial difficulties.
The management of the company will be carried out by Hyundai Development Company (HDC), the division that takes care of real estate investments in the Hyundai Group. The agreement has a total value of US$ 2,2 billion, and Mirae Asset Daewoo bank, part of the Daewoo Group, also participates in the consortium for the purchase of 31% of Asiana.
The new $2,2 billion deal also sees Hyundai take control of Asiana Airlines' d low-cost carriers, Air Seoul and Air Busan.
Earlier this year, Asiana Airlines' biggest shareholder, engineering and construction firm Kumho Industrial, was forced to put its 31% stake in the troubled airline up for sale after pressure from creditors.
In a statement following the purchase of Kumho Industrials shares by The Asia Times, HDC Hyundai Development President Chung Mong-Gyu said:
"We will immediately enter the process of acquiring Asiana Airlines to stabilize the company (financially)."
Long awash in financial troubles, Kumho Industrial has struggled financially. It also suffered other problems due to a trade dispute between South Korea and Japan.
