Evergrande Auto Secures 240 Billion KRW Funding by Selling Undeveloped Land

[Asia Economy Reporter Park So-yeon] Evergrande Auto, a key affiliate of Chinese real estate developer Evergrande, which is experiencing a severe liquidity crisis, secured approximately 240 billion KRW by reselling undeveloped land.

According to foreign media including the South China Morning Post (SCMP) on the 28th, Evergrande Auto announced on the night of the 26th that it returned 2.66 million square meters of undeveloped factory land to the government, with a total price amounting to 1.284 billion yuan (approximately 240 billion KRW).

Evergrande Auto stated that the funds secured from returning the undeveloped land will mainly be used for investment in production facilities and payment of workers' wages.

Despite the difficulties faced by its parent company, Evergrande Auto recently carried out a capital increase worth 985 million USD (approximately 1.175 trillion KRW).

Founded in 2019, Evergrande Auto aims to begin mass production of its first electric vehicle product early next year.