South Korea’s largest airline, Korean Air, said Monday that it had successfully raised 3.3 trillion won ($2.9 billion) by issuing new shares. Of the funds raised through the latest capital increase, some 1.5 trillion won will be used to acquire domestic rival Asiana Airlines, according to the carrier.

In the funding round, which ran from March 4 to 5, the right to buy the newly issued shares was given only to the firm’s existing shareholders and members of the employee stock ownership association. The subscription rate came in at 104.85 percent.

A total of 173.6 million shares were issued, and each over-subscriber will receive 0.5963 of a share. The new shares will be listed March 24.

The carrier plans to make a payment to acquire a controlling stake in Asiana Airlines by June 30, and to spend some 1.8 trillion won to pay debts, including financial leases and aircraft-backed loans, between April and December, according to the company’s filing.

It will also be able to obtain around 500 billion won by selling a large plot of land in central Seoul.

By Kim Young-won (wone0102@heraldcorp.com)