Lee Dong-geol: "Ssangyong Motor Labor and Management Still Complacent... Must Negotiate with 'Live Means Die, Die Means Live'"

Dong-geol Lee, Chairman of Korea Development Bank

[Asia Economy Reporter Kim Heung-soon] Lee Dong-geol, Chairman of the Korea Development Bank, emphasized on the 15th regarding the Ssangyong Motor issue pursuing the P-Plan (short-term court receivership) that "the Ssangyong Motor labor and management should actively negotiate with the potential investor (HAAH Automotive) with the spirit of 'Saengjeuksa Sajuksa' (live and die, die and live)."

Chairman Lee said at an online corporate restructuring system briefing held that day, "(Through negotiations) something must be drawn out and then ask the KDB and the government for help with that." He added, "Recently, it seems they have been trying hard, but the Ssangyong Motor labor and management still seem complacent in my opinion."

Regarding Ssangyong Motor's P-Plan, he said, "It is not going smoothly," and "The potential investor seems to judge that Ssangyong Motor's management environment has deteriorated and become more serious than initially expected." He also conveyed the atmosphere by saying, "Therefore, they have not yet made a final decision on whether to invest in Ssangyong Motor."

Chairman Lee explained, "The KDB and Ssangyong Motor are encouraging the potential investor to make a prompt decision," and "It is a situation where we cannot predict how the consultation process will proceed, and neither pessimism nor optimism is possible."

He said, "Some say that the KDB should put in money first, but if there is no investor, we cannot put in money first," and explained, "After the potential investor decides to invest and submits proof of funding and a business plan, we plan to objectively verify the feasibility through external experts and support funds based on the results."

Chairman Lee said, "If the business feasibility is good, we are willing to support funds in the form of loans to some extent, but the prerequisite is that sustainable business feasibility must be guaranteed." He also mentioned Ssangyong Motor, the labor union, the major shareholder Mahindra, partner companies, and creditors including foreign entities as stakeholders, emphasizing that "unprecedented pain-sharing among all stakeholders is necessary."

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