Donggeol Lee, Chairman of KDB, "Ssangyong Motor, Is It a Mistake to Think It Can Be Saved Just by Injecting Money?"

Ssangyong Motor Labor and Management Must Act with the Resolve of Saengjeukpilsah Sajukpilsa
Hope for Serious Negotiations with All Preconceptions Set Aside
Negotiations to Extend 90 Billion Won Loan Maturity "No Recovery of Existing Funds Expected"

[Asia Economy Reporter Kangwook Cho] Lee Dong-geol, Chairman of the Korea Development Bank (KDB), urged both labor and management sides of Ssangyong Motor to seriously reconsider everything regarding the company's sustainability.

On the 17th, during the 'Major Issues Online Briefing' held at KDB, Chairman Lee addressed the issue of support for Ssangyong Motor, stating, "The premise is that money alone does not save a company," and criticized, "It is a misconception to think that KDB can save a company just by injecting money."

He said, "We are seriously reviewing Ssangyong Motor's sustainability and viability," and pointed out, "My view is that both labor and management of Ssangyong Motor need to be more honest, but currently, that is insufficient."

Chairman Lee also quoted Admiral Yi Sun-sin's words, "Saengjeukpilsa Sajukpilsa (生卽必死 死卽必生 ? If you try to live, you will die; if you try to die, you will live)," saying, "Ssangyong Motor is only trying to survive and is not seriously putting everything aside to contemplate."

He added, "Honestly, I have doubts like 'Is this really possible in this state?'" and expressed his hope that "labor and management would put everything aside and negotiate seriously."

Chairman Lee also left a message for Mahindra, the largest shareholder of Ssangyong Motor.

He said, "Mahindra, as the major shareholder, has done their best so far, and I am grateful for that," but added, "Although the Indian market is currently difficult due to the COVID-19 situation, I expect and urge them to continue doing their best. That is all I will say."

He continued, "We will review the support issue for Ssangyong Motor after observing future developments."

KDB firmly stated that Ssangyong Motor is currently not eligible for support from the Corporate Restructuring Fund (CRF). This is because, in principle, the CRF is not intended to support companies with management problems that existed before the COVID-19 crisis.

Choi Dae-hyun, Deputy Governor in charge of restructuring at KDB, explained, "The prerequisites for Ssangyong Motor to receive support are, first, that the responsible parties have the will and are making responsible efforts, and second, that the company's sustainability is confirmed."

However, regarding the KDB loan of approximately 90 billion KRW maturing at the end of next month, he said there will be no recovery of existing funds.

Deputy Governor Choi said, "We are negotiating with other institutions for maturity extension," and added, "We will not recover the funds that have already been disbursed."

This content was produced with the assistance of AI translation services.