Ssangyong Motor Labor and Management Join Hands to Prevent Delisting

Labor and Management to Submit Petition and Appeal to Exchange on 21st
"Successful Sale Could Enable Escape from Capital Impairment"

On the 21st, Ssangyong Motor labor and management submitted a petition and appeal to the Korea Exchange to extend the improvement period for delisting. The photo shows Seon Mok-rae, Chairman of the Ssangyong Motor Labor Union (third from the left in the front row), and Park Jang-ho, Head of Production Headquarters (second from the right). Photo by XXX

[Asia Economy Reporter Hyunseok Yoo] The labor union and the company have joined forces to prevent Ssangyong Motor from being delisted. Currently, Ssangyong Motor is in a state of complete capital erosion and has received an auditor's refusal, making the possibility of delisting from the KOSPI market very high.

On the 21st, Ssangyong Motor's labor and management held a press conference in front of the Korea Exchange Seoul office in Yeouido, Seoul, stating, "We petition to extend the improvement period to resolve the reasons for delisting."

On this day, Seon Mokrae, chairman of the Ssangyong Motor labor union, submitted a petition and appeal letter to the exchange requesting an extension of the improvement period, which included requests from the company, Jeong Jangseon, mayor of Pyeongtaek, and the Pyeongtaek Chamber of Commerce and Industry. In particular, the company side was represented by Park Jangho, head of production (executive director), showing joint efforts from both labor and management.

In 2020, Ssangyong Motor received an auditor's refusal opinion on its financial statements, which triggered the delisting cause and was granted a one-year improvement period. However, during the improvement period, the company failed to attract investors and improve its financial structure to resolve the delisting cause, resulting in another auditor's refusal last year.

Chairman Seon emphasized, "The acquisition of Ssangyong Motor fell through as the buyer failed to pay the acquisition price," adding, "Ssangyong Motor is now facing the risk of delisting again as the improvement period to resolve the delisting cause has ended."

He stressed that if a delisting decision is made for Ssangyong Motor, it would cause significant obstacles to resale. He said, "This is directly related to the survival of 50,000 small shareholders and 200,000 workers including partner companies," and warned, "If delisted and resale fails, it could trigger a terrible aftermath of bankruptcy, leading to an irreversible catastrophe."

He emphasized the need to extend the improvement period as a successful sale of Ssangyong Motor could help the company escape capital erosion. He explained, "Maintaining Ssangyong Motor's listing is an absolute condition for normalizing the company through resale," and "If the sale succeeds, the company can overcome the capital erosion that is the cause of delisting."

Currently, Ssangyong Motor's rehabilitation plan was excluded by the court after the investment contract with the Edison Motors consortium was canceled. As a result, the company is undergoing a resale process again, aiming to complete all procedures by mid-October, the deadline for the rehabilitation plan approval. The acquisition battle for Ssangyong Motor has narrowed down to four parties, including KG Group, Ssangbangwool, Billion Private Equity (PE), and ELB&T, who have submitted letters of intent.

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