Ssangyong Motor-Edison Motors, Conflict Temporarily Resolved... Labor-Management Commission 'Mediation'

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Hyun-seok] The conflict between Ssangyong Motor and its acquirer Edison Motors over the appointment of a manager has been temporarily resolved through mediation by the Presidential Commission on Social Economy and Labor (Gyeongsanwi).

According to industry sources on the 13th, Moon Sung-hyun, chairman of Gyeongsanwi, held a meeting on the 8th at a restaurant in Yeouido, Seoul, with Kang Young-kwon, chairman of Edison Motors, and Jeong Yong-won, manager of Ssangyong Motor. Kang Sung-bu, CEO of the private equity fund KCGI, a member of the Edison Motors consortium, also attended the meeting.

Last month, Edison Motors requested the Seoul Bankruptcy Court to appoint one of its executives as a third-party manager to facilitate a smooth acquisition process. However, Ssangyong Motor opposed this, leading to conflict.

Edison Motors demanded that operating funds be used not only for immediate payment of parts but also for electric vehicle development and improvement of vehicle interior design. However, Ssangyong Motor took an uncooperative stance, prompting Edison Motors to insist on appointing its executive as manager to push for business normalization.

Furthermore, Edison Motors took a hardline stance, stating that after appointing a joint manager, even the current manager, Executive Director Jeong Yong-won, should be replaced.

During this meeting, Manager Jeong promised to actively cooperate by providing the requested materials and consulting in advance before using operating funds, creating a reconciliatory atmosphere.

Additionally, through Chairman Moon's mediation, Edison Motors and Ssangyong Motor agreed to strengthen cooperation during the corporate rehabilitation process.

In fact, after this meeting, Ssangyong Motor has been providing materials related to electric vehicles and interior design requested by Edison Motors and is reportedly planning meetings between working-level staff.

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