Kwack Jae-sun, Chairman of KG Group, Appointed Chairman of Ssangyong Motor... "Rapid Management Normalization"

Inauguration Ceremony at Pyeongtaek Factory

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] Kwak Jae-sun, chairman of KG Group, officially took office as chairman of SsangYong Motor on the 1st. It is interpreted as a move to quickly normalize management, as he assumed office just six days after completing the acquisition with the court's approval of SsangYong Motor's rehabilitation plan on the 26th of last month.

According to the automotive industry, Chairman Kwak held an inauguration ceremony at SsangYong Motor's Pyeongtaek plant in Gyeonggi Province on the same day and began official activities. The ceremony was attended by SsangYong Motor executives and employees, including administrator Jung Yong-won, as well as labor union officials such as Chairman Seon Mok-rae.

At the inauguration, Chairman Kwak expressed his commitment to implementing SsangYong Motor's rehabilitation plan, stating, "We must quickly make SsangYong Motor a sustainable company. We will make it a company that enriches the world."

Meanwhile, SsangYong Motor will proceed with stock consolidation, issuance of new shares due to capital conversion, and issuance of new shares through a paid-in capital increase according to the approved rehabilitation plan. In line with this schedule, SsangYong Motor announced plans for capital reduction and third-party allotment paid-in capital increase the day before.

According to this plan, SsangYong Motor's capital will decrease from 712.4 billion KRW before the capital reduction to 225.3 billion KRW after the reduction. The number of issued shares will decrease from 142.48 million shares to 45.06 million shares after the capital reduction.

SsangYong Motor will reduce capital by consolidating 3.16 shares of common stock with a face value of 5,000 KRW each into 1 share of common stock with a face value of 5,000 KRW. The capital reduction ratio is 68.37%.

Subsequently, if the acquirer KG Consortium acquires 73.098 million new shares (365.5 billion KRW) through a paid-in capital increase, KG Mobility will become the largest shareholder of SsangYong Motor with a total stake of 61%.

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