Eun Seong-soo “If Ssangyong is okay, I have to save it”… Additional support turning preview

Input 2021.02.17 17:54 | Revision 2021.02.17 17:55

Seongsu Eun, Chairman of the Financial Services Commission Ssangyong Motor (003620)Regardless of the success of the sale of the company, they made a statement that it would be better to support funds to save them. The government’s policy so far has been that the KDB should provide funding after Ssangyong’s major shareholder, Mahindra & Mahindra (Mahindra) in India, succeeded in the sale, and Ssangyong came up with a convincing recovery plan. This indicates a change in the government’s position.

Chairman Eun said, “I have employment, so it’s okay to save if it’s okay,” regarding Ssangyong Motor, while attending the National Assembly Political Affairs Committee on the 17th. He responded to the question of Rep. Yu-dong Yoo, “is Ssangyong a company that needs to be withdrawn or is a company that needs to provide additional support for normalization,” he explained, saying, “It must be seen from the industrial judgment whether it can survive.” .

Chairman Eun said, “No matter how much it will be difficult to support (Ssangyong Motor) suppliers,” he said. “If support for Ssangyong Motor is cheap and can be done at a low cost, how would it be to do our best to support Ssangyong Motors.”

Such remarks mean that it would be better for the government or the Korea Development Bank to provide unconditional funding for Ssangyong Motor. Until now, the Korea Development Bank has been in the position that Mahindra should sell Ssangyong Motor to strategic investors, and that strategic investors must come up with a feasible recovery plan to support funding.

Sang-eun Sang-eun, senior vice president of Sang-eun Choi, said earlier this month, “In order to normalize Ssangyong Motor, it is necessary to attract strategic investors (SI) with a high understanding of the automobile industry.” “Ssangyong Motor will only raise funds if it attracts SI and the business plan I will apply.” Sangeun said, “It is not possible to save the accumulated deficit over the past 10 years by putting money into companies with more than 1 trillion won.”

In the end, Chairman Eun’s remarks today show that the government is turning toward funding Ssangyong Motors regardless of the success of the sale. However, there is a situation where the Bank of Korea is sticking to its strong position, and the Financial Services Commission cannot unilaterally decide whether to provide funding from the Bank of Korea.