Ssangyong Motor pays only half of employee wages from January to February…

Ssangyong Motors decided to suspend the payment of 50% of employee wages in January and February.

According to the industry on the 25th, Ssangyong Motor’s president Ye Byung-tae said, “As part of the indemnification policy, we have no choice but to partially pay wages in January and February following the application for deferment of individual consumption tax in January.” He said, “I have a heavy heart and no face for what I did.”

Ssangyong Motor’s liquidity funds have been exhausted as some parts makers refused to deliver after applying for corporate rehabilitation on the 21st of last month, and demanded cash payments instead of bills as a condition to resume delivery.

“In the case of small business partners, they are paying for materials in cash,” said Yee. “If these companies go bankrupt due to non-payment, not only domino-type parts base collapse, but also our production itself suffers.” did.

He added, “One of the reasons for the rapid deterioration of the fund balance is the fact that materials must be paid due to the unpaid portion of the bills due last month and partial settlement of bills due in January and February.”

On the 29th, Ssangyong Motor’s bills of 180 to 200 billion won will be due. The Ssangyong Motor Cooperative Association, which is made up of 350 Ssangyong Motors’ small and medium-sized parts suppliers, estimates that the delivery cost, which has not been received since October last year, is over 500 billion won.

Ssangyong Motor’s sales are currently sluggish. President Yee said, “Even if we consider the traditional off-season, we are not selling close to 2,000 units than we originally planned,” and “Some pointed out why they couldn’t predict whether the purchase demand would drop in consideration of ARS, which is an autonomous restructuring support. Except for the three companies, the same sales are low.”

At present, finding a new owner, which is considered the only solution, is also experiencing difficulties. Ssangyong Motor has formed a consultative body with the Korea Development Bank, major shareholder Mahindra of India, and HAAH Automotive of the US to discuss the sale of the stake, but it has not reached a conclusion until the 22nd, the tentative negotiation deadline.

If the negotiations break like this, Ssangyong Motor will go into court management, and there is concern about the bankruptcy of small and medium-sized business partners.