Hanjin Group, the parent firm of Korean Air Lines Co., said Wednesday it will raise 1.98 trillion won (US$1.96 billion) by selling assets, paving the way for the debt-laden conglomerate to improve its financial health.
In a regulatory filing, Hanjin Energy Co., almost wholly owned by the country's top flag carrier Korean Air, said it will sell off its entire shares in S-Oil Corp. to Saudi Aramco, Saudi Arabia's state-run oil firm.
The deal will be completed late next month, the Korean firm said.
The deal is the latest in a series of asset sales by Hanjin Group whose business portfolio ranges from shipping to airline service.
Late last year, Korean Air, the group's flagship, said it would sell off assets worth 3.5 trillion won as part of efforts to improve its financial structure. Among other things, Korean Air said it would divest its 28.41 percent stake in S-Oil, the country's third-largest oil refiner.
Hanjin Shipping Co., the country's top shipping line, also announced a plan to raise 2 trillion won by selling assets such as vessels and port terminal. The group's shipping unit has already secured some 1.6 trillion won by selling assets.