-Payment of cash payment to partner companies
-Finding a new owner is also difficult
Due to the liquidity crisis, Ssangyong Motors decided to suspend payment of 50% of employee wages this month and next month.
According to the industry on the 25th, Ssangyong Motor President Ye Byung-tae said through an in-house bulletin board, “As part of the indemnification measure, we have no choice but to partially pay the salary in January and February following the application for deferring the individual consumption tax in January.” He said, “I have a heavy heart and no face for what has been done.”
“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.”
Ssangyong Motor’s liquidity funds have been exhausted as some parts makers refused to deliver after applying for corporate rehabilitation last month, and demanded cash payments instead of bills as a condition to resume delivery. On the 29th, a bill worth 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.
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As of now, Ssangyong Motor is also experiencing difficulties in finding a new owner, the only solution. Ssangyong Motor has been discussing the sale of shares with HAAH Automotive, which is known as a leading investor, but has not reached a conclusion until the tentative negotiation deadline. If the negotiations break down like this, Ssangyong Motor’s legal management is inevitable, as well as the chain bankruptcy of small and medium-sized business partners.
Reporter Seonghwan Kim [email protected]
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