Ssangyong Motor Escapes Capital Impairment with 278.8 Billion KRW Gain from Asset Revaluation

Plan to File Delisting Objection by the 13th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Ssangyong Motor, which is at a crossroads of corporate rehabilitation proceedings (court receivership), is expected to avoid delisting by improving its financial structure through asset revaluation.

On the 6th, Ssangyong Motor announced that it recorded a revaluation gain of 278.8 billion KRW through asset revaluation of 165 parcels of land in addition to its Pyeongtaek headquarters. It is known that Ssangyong Motor previously revalued these assets through the appraisal firm Da-il Appraisal Institute.

As of the end of last year, the book value of the land on the consolidated financial statements was 402.57 billion KRW (amount after deducting government subsidies). However, as a result of this revaluation, it significantly increased to 681.37 billion KRW.

As of the end of last year, Ssangyong Motor's capital erosion ratio was 111.8%, and total equity was -88.1 billion KRW, indicating a state of complete capital erosion. However, with an increase of 278.8 billion KRW in assets due to the asset revaluation, the financial structure has greatly improved.

Meanwhile, Ssangyong Motor, having escaped the state of complete capital erosion, plans to file an objection to the delisting procedure by the expiration date of the objection period on the 13th, based on this improvement.