Lee Dong-geol “Ssangyong Motor should increase collective agreement to 3 years and prohibit surplus warfare”

Korea Development Bank chairman Lee Dong-geol said, “We need to increase the collective agreement from one year to three years,” for Ssangyong Motor, which is undergoing corporate rehabilitation procedures. In addition, it proposed as a prerequisite for new investments to stop any industrial action before the surplus.

Chairman Lee made the announcement on the 12th after receiving a question about Ssangyong Motor’s conditional funding at an online press conference.

◆ Conditional support for Ssangyong Motors… “This is the last”

Chairman Lee said, “The negotiations between Ssangyong Motor and potential investors are in progress,” and “We will review when a new investor’s business normalization plan is submitted.”

Currently, Ssangyong Motor’s major shareholder Mahindra is negotiating with a potential investor. Mahindra, who owns 74.7% of Ssangyong Motor, plans to sell the stake to a new investor.

Recently, Korea Development Bank, Ssangyong Motor, major shareholder Mahindra, and HAAH, a US automobile distributor, which is considered a potential investor, are known to have opened a four-party consultative body and discussed the terms of the acquisition.

Accordingly, when the negotiations with Mahindra and a new investor are concluded, the Bank will review the feasibility evaluation and provide loan support. This is the first time that the Korea Development Bank announced its position for additional support to Ssangyong Motor.

Chairman Lee said, “I ask the labor and management of Ssangyong Motors. This is my last chance. If I miss this time, I will not have a chance to recover and no one will apply.”

“Even if the investment is successful, if it does not produce good results and becomes insolvent again, Ssangyong Motor will end with it,” he said. “You cannot buy a company with money alone, and you cannot save a company with money alone.” Ssangyong Motor’s labor and management have repeatedly emphasized the will to die.

◆ “You have to write a memorandum that you will not act in a war to wage a surplus”

In particular, Chairman Lee requested that the collective agreement be increased from one year to three years as a prerequisite for investment support.

He said, “I saw a lot of cases of self-harm that disrupt production due to strikes during the labor-management negotiations every year before normalization of restructuring companies and before making a surplus,” he said. “It is unacceptable in the future.” .

He said, “Before there is a surplus, you must write a memorandum to stop any industrial action.”

Ssangyong Motor also decided to apply the three principles of restructuring that the KDB has kept: ▲The responsible role of large shareholders ▲Stakeholder pain sharing ▲Sustainable normalization measures.

Chairman Lee said, “Ssangyong’s labor and potential investors will negotiate to make a negotiation result to ensure the viability of the business.”

◆ Korean Air-Asiana merger cruise… Airbus contact map

Chairman Lee Dong-geol said that the merger between Korean Air and Asiana Airlines is in progress. Chairman Lee said, “The merger scenario was carried out on the assumption that it will normalize next summer,” he said. “If Corona 19 ends early, it will normalize sooner.”

Regarding the merger and acquisition process, business combination examinations are submitted to 16 countries in January.

Chairman Lee said, “Even after the two airlines are merged, we believe that there will be no major problems with the merger of companies as the world’s 10th level.”

In particular, regarding some concerns about manpower restructuring, he said, “The Korea Development Bank, Korean Air, and Asiana executives all promised to retain employment,” and “I hope that you believe and follow that part.”

Chairman Lee stressed, “If the adjustment period is long (until normalization), restructuring is inevitable, but we believe that maintaining the current staff while working shifts is also desirable for corporate competitiveness.”

It also revealed that he had recently been contacted by an Airbus representative to meet him, explaining that the market power of national airlines has increased.

In addition, Chairman Lee expressed his opposition to the recent proposal of a bill that would add job security promotion to the purpose of the establishment of the KDB by the Democratic Party members of the National Assembly.

Chairman Lee pointed out, “In essence, if employment promotion in the bill is misunderstood as an employment obligation, WTO trade disputes may occur. If you look at restructuring from a short-term perspective and a biased perspective, the only answer is nationalization.”