Chairman Dong-geol Lee: "Support for Ssangyong Motor Not Possible at Current Stage... Possible Only When Buyer and Business Plan Are Presented" (Update)

"Cannot Judge Ssangyong Motor's Business Normalization Based on Ja-guan Alone"

[Asia Economy Reporter Park Sun-mi] As Ssangyong Motor's labor and management, which are undergoing corporate rehabilitation procedures, have reached a final agreement on a self-rescue plan centered on two years of unpaid leave, KDB Industrial Bank stated that funding support for Ssangyong Motor is impossible with this alone.

At a press briefing on the 14th, KDB Industrial Bank Chairman Lee Dong-geol maintained the existing principle that "financial support is possible only if Ssangyong Motor attracts investors with management capabilities and presents a sustainable business plan," and dismissed by saying, "Although this self-rescue plan has a fixed cost reduction effect, it is impossible to judge the normalization of Ssangyong Motor's management with the self-rescue plan alone, so at present, there is no position from KDB Industrial Bank regarding (funding support)."

He said, "No one can save Ssangyong Motor without a sustainable business plan, and it is not easy to support a company that no one can save," adding, "We need to think carefully about whether the efforts of Ssangyong Motor's labor and management are sufficient. I understand that labor and management have worked hard with two years of unpaid leave, but I can only say it is a step forward."

He also added, "The self-rescue plan created by Ssangyong Motor's labor and management will be included in the rehabilitation plan and evaluated by potential acquisition candidates," and "Ssangyong Motor's labor and management should be viewed from the perspective of how they persuaded investors, not from the perspective of KDB Industrial Bank and the government."

Regarding candidates who will become the new owners of Ssangyong Motor, he said, "I strongly hope that responsible and capable entities will participate in the M&A and submit sustainable business plans," but added, "Currently, sincere acquisition candidates are very rare. Much effort will be required."