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Korean Air Lines Co will present a 1.5 trillion self-rescue plan in return for a 1.2 trillion financial support from two state lenders.
The plan includes a 1 trillion won stock offering.
The Korea Development Bank (KDB) and the Export-Import Bank of Korea (Exim Bank) had announced that they would inject 1.2 trillion won into Korean Air to ease the impact of the pandemic.
The amount consists of 200 billion won operating capital to Korean Air for a purchase of 700 billion won worth of securities 300 billion won in perpetual bonds convertible into stocks.
The perpetual bonds with no maturity date could be converted into Korean Air stocks and get a 10.8 percent stake in the carrier.
Korean Air will sell non-core assets and had 70 percent of its 20,000 workforces take paid leaves for six months as part of its self-rescue plan.
Most international flights have been suspended by local airlines due to entry restrictions triggered by the coronavirus.
