Ssangyong Motor Union and Creditors Deliver Request Letter to KDB: "Delay Interest Waiver and Principal Equity Conversion Required"

Full Waiver of 19.6 Billion KRW in Delayed Interest
Demand for Conversion of 190 Billion KRW Principal into Equity

The Ssangyong Motor Labor Union is holding a press conference on the morning of the 17th in front of the Korea Development Bank in Yeouido, Seoul, urging the bank to provide support. The photo shows Seon Mok-rae, chairman of the Ssangyong Motor Labor Union, delivering a letter of request to the Korea Development Bank. Photo by Seon Mok-rae

[Asia Economy Reporter Kiho Sung] The trade creditor group, consisting of the Ssangyong Motor labor union and about 340 partner companies, urged the Korea Development Bank (KDB) to waive delayed interest and convert principal into equity.

On the 17th, the Ssangyong Motor labor union and the creditor group held a press conference in front of the KDB in Yeouido, Seoul, announcing this and submitting a letter of demand in the name of the labor union containing these requests to the KDB's restructuring office.

Through the letter, they demanded a full waiver of delayed interest amounting to 19.6 billion KRW and conversion of 190 billion KRW of principal into equity.

Seon Mokrae, chairman of the Ssangyong Motor labor union, stated, "Most of the acquisition price of 365.5 billion KRW paid by the KG Consortium has been used to repay delayed interest and principal, resulting in an actual repayment rate of only 41.2% for the creditor group," adding, "For Ssangyong Motor to grow into a sustainable company, co-growth with partner companies, which are the trade creditor group, is essential."

He continued, "Supporting the automotive parts industry through waiving delayed interest and converting principal into equity, and acting as a breakwater for small and medium-sized partner companies, is the responsibility of the policy bank, Korea Development Bank."

Park Kyungbae, representative of the creditor group, said, "The KDB’s full recovery of delayed interest and principal has lowered the repayment rate to the trade creditor group, exacerbating difficulties for small and medium-sized enterprises."

Choi Byunghoon, secretary general of the creditor group, also said, "The KG Consortium plans to invest an additional 30 billion KRW beyond the acquisition price to preferentially repay the trade creditor group, and Ssangyong Motor employees are voluntarily converting equity as well," urging, "We call for the KDB’s proactive consideration."

Previously, the creditor group submitted a petition to the Presidential Office, the Prime Minister’s Office, the Ministry of Economy and Finance, and the National Tax Service, stating that the repayment rate of the debt is low.

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