Financial Services Commission: "No Consideration Given to Easing Additional Support Criteria for Ssangyong Motor Suppliers"

[Image source=Yonhap News]

[Asia Economy Reporter Kangwook Cho] The Financial Services Commission stated that it has "not considered relaxing the criteria" for additional support to Ssangyong Motor's partner companies.

On the 17th, the FSC issued a rebuttal statement regarding some media reports that the government is pushing to significantly lower the financial support threshold for Ssangyong Motor's partner companies.

The FSC said, "Since Ssangyong Motor's application for the ARS (Autonomous Restructuring Support Program) on December 21 last year, related agencies have been actively supporting Ssangyong Motor's partner companies through inter-agency cooperation," adding, "However, there are misunderstandings regarding the details of individual programs."

First, the FSC explained, "The support program under the ‘Industrial Innovation Fund’ targets essential companies to maintain the industrial ecosystem and selects them in collaboration with primary contractors and relevant ministries," and clarified, "There has been no consideration to expand the program's target to all Ssangyong Motor partner companies regardless of credit rating."

Additionally, the FSC stated, "The ‘Cheer Up Korea Special Operating Fund’ has expanded the support limit for partner companies in key industries such as automobiles from 1 trillion won to 1.5 trillion won, and the ‘Emergency Management Stabilization Fund’ (limit of 1 billion won) has also implemented measures to partially relax application requirements (excluding the condition of a 10% or more decrease in sales)."

Furthermore, the FSC rebutted, "There has been no consideration to relax additional support criteria for Ssangyong Motor's partner companies."

The media reported that the ‘Industrial Innovation Fund’ support program for partner companies would expand its target from companies recommended by Ssangyong Motor to all Ssangyong Motor partner companies regardless of credit rating, and that the support criteria for the Korea Development Bank’s ‘Cheer Up Korea Special Operating Fund’ and the Small and Medium Business Corporation’s ‘Emergency Management Stabilization Fund’ would also be partially relaxed for Ssangyong Motor partner companies.