Sang-eun Lee, Chairman of Korea Development Bank, Warns Ssangyong Motor: "Must Sign Dispute Suspension Agreement to Receive Support... Last Chance"

[Image source=Yonhap News]

[Asia Economy Reporter Kangwook Cho] Lee Dong-geol, chairman of the Korea Development Bank, warned the Ssangyong Motor labor and management on the 12th, saying, "The ongoing negotiations for new investment with the potential investor are the last chance."

At the New Year's press conference held online that day, Chairman Lee stated, "If this opportunity is missed, there will be no chance for Ssangyong Motor's recovery, and no one will invest."

Ssangyong Motor filed for corporate rehabilitation proceedings (court receivership) on the 21st of last month. This was the result of prolonged financial deterioration and difficulties in securing a new investor to replace the Indian Mahindra Group. The current major shareholder, Mahindra, is currently negotiating with potential investors regarding Ssangyong Motor's shares.

Chairman Lee said, "Negotiations with potential investors regarding new investment in Ssangyong Motor are ongoing,"

"but from the creditors' standpoint, we cannot disclose key details or information about the progress of the negotiations," he drew a line.

He then set two conditions for Korea Development Bank's support of Ssangyong Motor. One is to extend the collective agreement contract from a one-year term to a three-year term, and the other is to sign a memorandum pledging to suspend all labor disputes until the company returns to profitability.

Chairman Lee emphasized, "We have seen many cases of self-harm such as annual strikes and production disruptions before restructuring companies have even normalized," and added, "There must be absolutely no self-harm caused by discord between Ssangyong Motor's labor and management."

He continued, "If these two preconditions are not met, we will not provide even a single won of support," warning firmly.

Chairman Lee said, "This is not intended to oppress the labor union unilaterally," but "it is a last-ditch request to save Ssangyong Motor."

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