Lee Dong-geol “Ssangyong Motor will provide funding only after stopping its industrial action…this is the last time”

Korea Development Bank Chairman Lee Dong-geol warned Ssangyong Motors and the labor union, who are looking for a new owner, that if they do not keep their promise to stop any industrial action, they will not be able to apply for a single won. Chairman Lee raised his voice, saying, “If Ssangyong Motor gets worse, who will support Ssangyong Motor in Korea?”

On the 12th, chairman Lee Dong-geol held an online New Year’s conference and said, “Ssangyong Motor should be determined that this is the last chance.” “As a result of negotiations with Ssangyong Motor’s new major shareholders, if the business feasibility is acceptable, corresponding loan support will continue.” Chairman Lee, who appealed to Ssangyong Motor’s desperate situation, repeatedly stressed that this is the last support. Chairman Lee suggested the application requirements, saying, “But we must keep two promises.” The detailed proposals proposed by the Bank of Korea on this day include: △The collective agreement will be increased from one year to three years, and △all disputes will be stopped until the surplus comes out.

Chairman Lee raised his voice, saying, “If these two conditions are not presented, the Bank will not apply for a single won.” He added, “Before the restructuring companies normalize and before they turn into a surplus, we have seen many cases of self-harm activities that strike labor-management negotiations every year. As long as this deal ends, there will be no additional support. “There should be no self-harm behavior, so we have to increase it from one year to three years.”

Ssangyong Motor’s potential investors are US automobile retailer HAAH Automotive. Chairman Lee said, “We are currently in the process of attracting potential investors and new investments,” and “Saneun plans to review funding when an investor’s proposal is submitted, such as a business feasibility evaluation and management normalization plan.” KDB is currently negotiating with creditors, Ssangyong Motors, major shareholder Mahindra, and a consultative body in which US auto retailer HAAH Automotive, a leading equity buyer, participated. The first meeting was held on the 30th of last month, and the second meeting was held this afternoon. The contents presented at the conference on this day were also delivered to Ssangyong Motor and Mahindra.

Chairman Lee said, “This opportunity is really the last,” he said. “Even if you receive an investment from this opportunity, you have to think,’If it becomes insolvent once again, that is the end.” He added, “I heard that the government and the KDB are threatened to receive funding as the company becomes difficult. It will never happen in the future,” he said. “After normalization, Ssangyong’s labor and potential investors should consult and stand alone.”

Regarding the integration of Korean Air and Asiana Airlines, he said, “As the current due diligence and PIM are progressing smoothly, mergers and acquisitions will not be disrupted,” he said. “I don’t think there is a big risk factor or ambush.” Chairman Lee said, “The prerequisite for the merger and acquisition scenario was carried out under the assumption that the aviation industry would normalize around next summer. If the vaccine is well distributed and the corona is ended early, costs may be reduced, but if it is delayed, it will normalize after summer. “It may not be possible.”

In addition, Chairman Lee said, “We plan to submit a business combination report to 16 countries in January,” he said. “There will be no big concern as it is the world’s 10th level even if it is integrated in the future, and it is only the 7th place in the world even if both companies’ transport volumes are added together at the end of 2019.” . In particular, restrictions on competition will cause problems for each route, and it is explained that there will be no controversy over monopoly as national airlines mainly have many routes in large cities and intense competition.

In addition, regarding the opposition of the National Pension Service to the change of the articles of incorporation for the integration of Korean Air and Asiana Airlines, Chairman Lee said, “(Korean Air’s 2nd largest shareholder), despite the expectation that the value of its stake in the National Pension, will increase a lot,’why? “I have no choice but to have doubts,” he said. “From the perspective of Saneun, the cause of (airline integration) does not appear to have faded,” he explained. Regarding the issue of the voting rights exercise committee for Hanjin Kal, the parent company of Korean Air, he said, “We will actively review the areas that can be reflected among the principles of the stewardship code (trustee responsibility) in order to improve corporate value and promote sustainable growth of the company.”