Korean Air announced on the 6th that it has successfully issued a JPY 20 billion (approximately KRW 190 billion) Samurai bond with a guarantee from the Export-Import Bank of Korea (KEXIM). Samurai bonds are JPY-denominated bonds issued in Japan by foreign corporations or institutions. Both interest and principal are paid in Japanese yen (JPY), and the bonds are priced against Japanese government bond yields. By taking advantage of the weak yen environment for funding, the company has partially reduced its interest burden and other financing costs.

In particular, the successful completion of this Samurai bond issuance amid ongoing external uncertainties such as high oil prices and a strong US dollar is being evaluated as evidence of Korean Air’s strong credit quality and growth potential. Investors were reported to have highly valued the airline’s stable profitability based on a balanced portfolio of passenger and cargo operations. Expectations regarding operational synergies from the integration with Asiana Airlines and the potential expansion of its global network are also analyzed to have positively influenced investor demand in this deal.

Korean Air also stated that it has secured separate large-scale policy financing support for the introduction of next-generation aircraft. In line with Korean Air’s new fleet expansion plan, KEXIM is promoting a total of KRW 700 billion in financial support, including KRW 300 billion in export financing and KRW 400 billion from the Supply Chain Stabilization Fund. The Supply Chain Stabilization Fund is a policy financing instrument established to respond to global supply chain realignment and to support the stable operation of key industries directly linked to national economic security. This policy financing support is expected to further accelerate Korean Air’s fleet modernization initiative. Last year, Korean Air announced a plan to invest a total of USD 36.2 billion (approximately KRW 55,480.1 billion) to introduce an additional 103 high-efficiency aircraft from Boeing in the United States. The planned aircraft types include 20 Boeing 777-9s, 25 787-10s, 50 737-10s, and 8 777-8F freighters. The new aircraft are scheduled to be delivered sequentially through the late 2030s.

A Korean Air official said, “The successful issuance of this Samurai bond is a meaningful achievement that confirms global investors’ confidence in Korean Air’s stable business competitiveness and future growth potential,” adding, “By introducing next-generation aircraft and modernizing our fleet, we will enhance customer service and operational efficiency and grow into the most beloved airline in the world.”

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