Ssangyong completes rehab debt repayment

Ssangyong Motor Company (SMC) announced that it has finished its repayment of the rehabilitation debt.

In a statement, the company said that the funds for the repayment came from the acquisition by the KG Group.

Following this, the company is planning to accelerate its early management normalization by raising sales and immediately gaining profit.

“Ssangyong Motor has already laid the foundations for its business stabilization and future growth development following its successful M&A and the completion of the corporate rehabilitation procedure,” the statement noted.

Further, Ssangyong appointed Kwak Jea-sun as its new chairman and Jeong Yong-won as Chief Executive Officer in September, and steps were taken in October “to stabilize management with further executive appointments and organizational reforms to actively respond to changes in the new business.”

Last July, the KG Consortium and SsangYong's labor and management signed a three-party special agreement pertaining to job security and long-term investment. Labor-management cooperation was strengthened to further solidify labor relations and to avoid a repeat of previous failures in this area.

The KG Group also completed a second round of capital investment last month to repay priority claims and as part of its operational financing plan. After repaying its rehabilitation debts, it is accelerating the improvement to the company’s financial structure leading to the swift normalization of business.

Moreover, Ssangyong said that the brand’s growth will be based on the company’s move towards electrification, which will be supported through additional capital funding from the KG Group.

“On behalf of everyone at SsangYong Motor, we would like to express our sincere gratitude to all stakeholders, including the Seoul Rehabilitation Court, creditors and partners for their understanding and support in successfully completing the corporate rehabilitation procedure, and laying the foundation for the company’s business normalization,” Ssangyong noted.

We particularly reach out to our customers to thank them for their loyalty, and as a completely new and transformed business, aim to reward them by providing the best possible customer service, and thank them for their patience,” the company added.

Photos from Ssangyong Philippines Facebook page

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