Conclusion of Rehabilitation Proceedings 1.5 Years After April 2021 Start
KG Group Raises Capital to Repay Bonds and Secure Operating Funds
[Asia Economy Reporter Choi Dae-yeol] Ssangyong Motor is drawing attention as it ends court receivership after a year and a half, raising expectations for accelerating business normalization. The company plans to strengthen its profit structure by increasing sales volume while steadily advancing electric vehicle development with funds supported by its parent company.
The Seoul Bankruptcy Court Rehabilitation Division 1 announced on the 11th that it accepted Ssangyong Motor's application to terminate corporate rehabilitation proceedings. This comes about 1 year and 7 months after the start of the rehabilitation process. The company stated, "With the acquisition funds brought in through the merger and acquisition with KG Group, we have completed repayment of rehabilitation debts and are starting anew as a family company of KG Group."
Ssangyong Motor explained that this decision has laid the foundation for stabilizing management and promoting future growth and development. Centered on the Sports Utility Vehicle (SUV) Torres, which is showing signs of recovery, the company also announced its goal to further increase sales volume, turn profitable, and achieve early business normalization.
Earlier, in September, the company appointed KG Group Chairman Kwak Jae-sun and Ssangyong Motor President Jeong Yong-won as co-CEOs. Last month, it carried out executive personnel changes and organizational restructuring. In July, the acquirer KG Consortium and Ssangyong Motor’s labor union signed a tripartite special agreement focusing on employment security and long-term investment. The company explained, "We have strengthened cooperation between labor and management to solidify a win-win labor-management relationship and avoid repeating past failures."
KG Group repaid rehabilitation debts through the first capital increase and completed a second capital increase last month to repay public claims and secure operating funds. KG Group is expected to actively support Ssangyong Motor in establishing a future growth foundation such as electrification transition through additional capital increases.
The company plans to actively target export markets by introducing Torres, which has settled in the domestic market, to overseas markets. Investment and technology development will also be promoted to ensure the smooth development of electrified models, led by the U100, scheduled for release next year.
Ssangyong Motor expressed gratitude to the Seoul Bankruptcy Court, creditors, partners, and other stakeholders who helped establish the foundation for business normalization, stating, "We will approach customers as a newly transformed Ssangyong Motor by providing the best service to our customers."
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