[현장에서] The job problem that became the cause of government support from Ssangyong Motors

[이데일리 이승현 기자] The government is likely to provide financial support for Ssangyong Motor. Finance Commissioner Eun Seong-soo met with reporters after a meeting with the heads of policy and financial institutions at the Seoul Bank Center on the 19th and said, “The answer from the National Assembly Political Affairs Committee on the 17th is valid.” “Ssangyong Motor also has employment problems, so if it’s okay, it’s better to save it,” he confirmed again at the National Assembly.

He said that the creditors (Korea Development Bank) also agreed in principle. Chairman Lee Dong-geol and San-eun also attended the meeting that day.

Interestingly, the government mentioned the employment issue for support. In the past year, maintenance of employment has not been an official consideration in relation to the Ssangyong Motor support issue.

In particular, there are aspects that do not match the policy of the Korea Development Bank, which is in charge of restructuring. At a press conference last month, Chairman Lee Dong-geol said, “We have supported restructuring under’Three Principles’,” and said, “It is essential to share the pain of executives and employees.” He also said that it would be difficult to carry out practical restructuring in response to the political movement to stipulate employment security for the purpose of the industrial economy.

The KDB emphasizes principles such as the responsible role of major shareholders in restructuring issues, the sharing of pain among stakeholders, and sustainable normalization measures. In addition, it demanded the Ssangyong Motors’ union to extend the validity period of collective agreements and to prohibit any industrial action until turning to a surplus.

At present, it seems difficult to say that none of them have been properly implemented. On December 21, last year, the voluntary sale negotiations, which started after applying for the ARS (autonomous restructuring support program) method of corporate rehabilitation procedures, have been missed. India Mahindra, the majority shareholder, withdrew. It is reported that Ssangyong Motor will sign an investment contract with HAAH Automotive Holdings, an American automobile retailer on the 25th. However, it is difficult to assure whether a future business plan will be presented at a level acceptable to creditors.

In other words, it would be reasonable to interpret the mention of the employment issue as a disclaimer. It means that I will prevent liquidation from being liquidated like this.

As of the end of last year, the number of direct employees of Ssangyong Motor was 4845. It is said that the total number of employees and family members at partner companies is close to 600,000. It seems natural for the government to try to prevent massive unemployment from occurring. It may be a realistic way to support primary contractors in order to save numerous partners. Chairman Eun Seong-soo said, “No matter how much support is available to suppliers, it will be difficult.” He said, “If Ssangyong Motor’s support can be done at a low cost (supporting suppliers), I would like to do our best to support Ssangyong Motors.”

However, there is clear controversy over the government’s judgment. Criticism for inconsistent with the restructuring principles must be accepted. In the end, it may be said that it is’Temple Buddha’.

In order to invest public funds, there will be a majority agreement. I would rather take this opportunity to present the employment issue of the prime minister and partner companies as a principle of restructuring in the case of large-scale workplaces.

Main gate of Ssangyong Motor Pyeongtaek factory in Pyeongtaek, Gyeonggi-do. (Photo = Yonhap News)