Jeju Air Deploys KRW27 Billion into Affiliate Debt as Cash Generation Rebounds

Jeju Air has invested KRW27 billion in loan bonds issued by affiliate Aekyung Asset Management, putting a portion of its liquidity to work following a sharp recovery in operating cash generation.

The investment equals about 14% of the KRW191.1 billion in cash and cash equivalents Jeju Air held at the end of the first half of 2026. The bonds reportedly carry a higher interest rate than conventional bank deposits, giving the airline an additional source of investment income while providing liquidity to another Aekyung Group company.

The transaction comes despite substantial capital spending by Jeju Air. The carrier invested KRW248.1 billion in aircraft purchases during the first half while recording only a KRW5 billion net increase in borrowings after accounting for new debt, repayments and lease obligations.

That spending was supported by a significant turnaround in internally generated cash. Jeju Air recorded KRW148.9 billion of net operating cash inflow during the first half of 2026, compared with a KRW125.6 billion outflow in the prior-year period. Its net increase in borrowings also fell sharply from KRW55.5 billion a year earlier.

Jeju Air has maintained cash holdings of around KRW200 billion since the end of 2023, providing liquidity for fleet investment while limiting its reliance on additional borrowing.

The KRW27 billion investment also provides fresh liquidity to Aekyung Asset Management as Aekyung Group pursues broader measures to strengthen its finances, including asset sales.