South Korea's Korean Air Lines Co. Ltd. said it will sell assets to raise KRW3.5 trillion ($3.3 billion) to reduce its burgeoning debt. Korean Air is the country's flag carrier and largest airline.

In an e-mailed statement to Bloomberg, Korean Air said it will sell 30 million shares of refiner S-Oil to raise KRW2.2 trillion. The airline will also dispose 13 aircrafts for KRW250 billion and property and other assets for KRW1.04 trillion.

Proceeds from the sale will be used to provide KRW100 billion in additional aid to Korean Air's affiliate Hanjin Shipping Co. The flag carrier is also seeking to pare its debt as South Korea's financial regulator is bolstering banks' monitoring on corporate lending, the report said.

Korean Air in October said that it would provide KRW150 billion to Hanjin to help ease the company's temporary liquidity shortage. The airline is the biggest shareholder of Hanjin Shipping Holdings Co., which owns the largest stake in Hanjin Shipping, Bloomberg said.

Korean Air has a total debt of KRW9.7 trillion, based on Bloomberg data. As much as KRW3.16 trillion of the said debt is due next year.