[취재수첩] Should I fill Ssangyong’s’empty (?)’

Should I fill Ssangyong’s empty bankbook?

Ssangyong Motor, which is experiencing a liquidity crisis, applied for corporate rehabilitation to the Seoul Rehabilitation Court on the 21st. The application for court management has been 11 years since 2009.

The cause was the failure to pay off the debt that had reached maturity. On the 14th of this month, they overdue 60 billion won to foreign financial institutions and failed to repay 90 billion won and 15 billion won respectively to Korea Development Bank and Woori Bank on the 21st. The debt to be paid right now amounts to 165 billion won.

Ssangyong Motor’s application for legal management was not expected even by the Korea Development Bank. The Korea Development Bank, which was thinking about extending the maturity, ended up getting a good shot at Ssangyong.

This super precipitation is interpreted as a measure to pressure the government.

Ssangyong Motor’s instincts can be seen by simultaneously applying for an application for withholding the commencement of procedures (ARS program) along with the legal management. Of course, he would have had enough connection with Mahindra, the major shareholder.

For the next three months, Ssangyong Motor has faced the task of attracting investors and reaching an agreement with creditors at the same time.

The government is also very troubled. In fact, if the government actively promises to provide support, Ssangyong’s recovery will be fine. It will take time, but investors will also be able to find it.

The problem is that you can’t always pour out blood bills. You may be accused of pouring water into the underlying poison.

Ssangyong Motor has recorded a deficit for 15 consecutive quarters from the first quarter of 2017 to the third quarter of this year. In this process, the size of the debt is increasing day by day.

In fact, Ssangyong Motor’s capital erosion rate reached 86.9% in 3Q. It also increased significantly compared to the end of 2019 (46.2%).

Like all companies, there can be debts. Then it is normal to run the company and pay off the debt. However, the more Ssangyong Motor rotates, only the deficit is accumulating. This is the decisive point that the government feels a burden on Ssangyong Motor’s support.

The outlook for next year is not so bright. It is preparing to launch the brand’s first electric car at the beginning of the year, but it is difficult to guarantee a box office success. The market is already full of competitive products in the same class.

There are no new cars other than electric cars. Ssangyong’s reality is that we can’t even expect a big hit like Tivoli. It is comforting that Rexton sales are on the rise due to the effect of Youngwoong Lim.

With this logic, if the government says it cannot apply to Ssangyong Motor, it is enough. But the reality is not as easy as it sounds.

When Ssangyong Motor goes into court management, tens of thousands of people, including suppliers, are threatened with livelihoods. If you expand the scope and include family members, it will increase to hundreds of thousands of people. It is difficult to overlook the government, which puts jobs first.

What is the correct answer? The government’s struggle to find an answer continues today. What is clear is that we have to overcome this situation once again with the least wavelength.

It is noteworthy what decision the government will make between putting blood tax and maintaining jobs.