Chairman Dong-geol Lee of Korea Development Bank on Ssangyong Motor Investment Refusal: "Mahindra's Intentions Under Review"

[Asia Economy Reporter Jang Hyowon] Lee Dong-geol, Chairman of KDB Industrial Bank, said he is trying to ascertain the true intentions behind the Mahindra Group of India’s refusal to provide financial support to Ssangyong Motor.

According to industry sources on the 6th, Chairman Lee told reporters after the ‘COVID-19 Response Emergency Financial Support On-site Meeting for Companies and Small Business Owners’ that “I suspect the Mahindra Group withdrew support due to financial pressure from its headquarters.”

Earlier, Ssangyong Motor had requested 500 billion KRW in support from its parent company, the Mahindra Group. In response, earlier this year, Pawan Goenka, President of Mahindra, announced a new investment of approximately 230 billion KRW in Ssangyong Motor. However, on the 3rd, the investment was abruptly withdrawn.

Ssangyong Motor currently has short-term borrowings amounting to 250 billion KRW and requires additional financial support. Of the loans borrowed from the Industrial Bank, 90 billion KRW is due in July.

Regarding this, Chairman Lee stated that since the maturity date has not yet arrived, discussions on extension are not yet underway.

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