In line with the historic nature of the acquisition of its first Boeing 787-10 Dreamliner, Korean Air sought to ensure every aspect of the transaction reflected its national identity and strategic financial priorities. From the aircraft’s custom livery – symbolising the airline’s first rebranding in 41 years – to the structure of the financing, Korean Air pursued a solution that was both innovative and aligned with its long-term treasury goals.

A key challenge for Korean Air’s financing team was addressing a fundamental currency mismatch. While the airline earns a substantial portion of its revenues in Korean Won (KRW), the purchase of the aircraft from Boeing required payment in US dollars (USD). Utilising conventional USD or EUR financing would have created significant foreign exchange exposure, requiring the use of hedging instruments and adding operational and financial complexity to the airline’s treasury management. To align debt servicing with its revenue base and mitigate currency risk, Korean Air prioritised a KRW-denominated financing structure.

Simultaneously, the company aimed to leverage support from the Export-Import Bank of the United States (EXIM Bank) to take advantage of its favourable guarantee terms, diversify its funding sources and preserve its corporate bank credit lines. However, this presented a novel challenge as EXIM Bank had never supported a KRW-denominated financing transaction. As a result, the proposed structure required careful due diligence and rigorous review from legal, regulatory and operational perspectives to determine its feasibility.