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| ▲ Gyeonggi Governor Lee Jae-myeong is giving a condolence to the citizen incense center of Ssangyong Motor Co., member Kim Joo-jung, in front of Daehanmun Gate in Deoksugung Palace in Seoul on the morning of July 6. | |
| Ⓒ Gyeonggi-do |
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“It’s not over until it’s over.”
Gyeonggi Gyeonggi Governor Lee Jae-myeong, who said that he would find the best possible solution for the normalization of Ssangyong Motors and take it to the end, started to support Ssangyong Motor’s partner companies. Gyeonggi Province announced on the 18th that while Ssangyong Motors is preparing a rehabilitation plan, it has decided to provide a special guarantee worth 5 billion won to help Ssangyong Motor’s partnered SMEs overcome the liquidity crisis.
In the case of the guarantee business, the actual amount of support is expected to reach 50 billion won, in that 10 times are usually set as the guarantee limit. Earlier, Governor Lee Jae-myeong has consistently kept its promise to support normalization, such as purchasing 27 (54%) of the 50 public vehicles purchased by Gyeonggi-do in 2019 with Ssangyong.
Why did Governor Lee Jae-myeong roll up his arms to normalize Ssangyong Motors?
Reason for purchasing half of Gyeonggi-do’s public vehicles with Ssangyong
The so-called’Ssangyong Motor Incident’ began in June 2009 when the management responsible for insolvent management fired nearly 1,000 workers and drove them to the streets. Dismissed workers protested against the management’s unilateral restructuring, and fought violently at the Pyeongtaek plant for about 77 days, and in the process, many injuries were injured due to excessive physical suppression of public power. In addition, 64 union members, including former chairman of the KCTU, Han Sang-gyun, were detained.
After the strike, Ssangyong Motor’s management and unions gathered to discuss the reinstatement of dismissed workers from 2015, and on May 4, 2020, the last 35 reinstated workers went to Ssangyong Motor’s Pyeongtaek plant. It was 10 years and 11 months after being fired. However, the’Ssangyong Motor Incident’ was inscribed as a terrible record of’dismissal is murder’. After the layoffs of Ssangyong Motor, about 30 people, including the union members and their families, died of themselves or died of illness. Those who survived had to suffer hundreds of millions of damages and foreclosures from the management, police, and insurance companies. They were blacklisted and were unable to re-employment at the same company, so they suffered severe life.
Governor Lee Jae-myeong visited the late Kim Joo-jung incense in front of Daehanmun Gate in Seoul on July 6, 2018, just after taking office as Governor of Gyeonggi Province, and said, “I will start with what I can do to normalize Ssangyong Motor.” It is said that 27 units, 54% of the public vehicles that can be purchased in Gyeonggi-do, will be purchased by Ssangyong Motors.
In fact, Gyeonggi Province invested a budget of 940 million won in March 2019, with 10 RVs (Rexton 4, Tivoli 1, Turismo 9-seater 5), 5 vans (Turismo 11-seater), 12 trucks (Rexton Sports), etc. A total of 27 public vehicles were purchased from Ssangyong. These vehicles are used not only by the Gyeonggi Provincial Office, but also by 11 institutions including the North Gyeonggi-do Office, the Fire and Disaster Headquarters, and the Institute for Health and Environment.
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| ▲ On the morning of August 13th, Gyeonggi Gyeonggi Governor Lee Jae-myeong, Governor Lee Jae-myeong, at the office of the Governor of Gyeonggi Province, takes a commemorative photo after meeting with Ssangyong Motor’s dismissed family members, including Ssangyong Motor’s head of the Metals Union, Kim Deuk-jung, and members of the support group. | |
| Ⓒ Gyeonggi-do |
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On August 13, 2018, Governor Lee Jae-myung recognized the’Ssangyong Motor Problem’ as a solution to Gyeonggi Province, even at the meeting with officials such as Ssangyong Motor Branch Manager Kim Deuk-jung of the National Metals Union and Kwon Ji-young Warak Center, a support organization for Ssangyong Motor’s dismissal and survivors Promised active support.
Governor Lee said, “The difficult reality facing Ssangyong Motor’s dismissal workers is not a problem only for individual companies or workers, but for society,” said Governor Lee. “Recognizing this as a task for Gyeonggi Province, and providing support and solutions at the provincial level. I will find it.” He also conveyed the meaning of “We will make every effort to restore the honor, recover damage, and return to work of Ssangyong Motors fired workers as soon as possible. Above all, we will make more meticulous efforts to heal the pain of the fired workers and their families.”
On October 1 of the same year, Governor Lee Jae-myung met with Ssangyong Motors CEO Choi Jong-sik and President Moon Sung-hyun, the chairman of the Economic and Social Labor Committee to discuss ways to support Ssangyong Motor normalization. Governor Lee said, “Thank you for making a difficult decision (reinstatement of dismissed workers). We hope that we will export a lot in the future, and make an effort to actively contribute to revitalizing the domestic demand and creating jobs.” We will actively cooperate and spare no effort for support.”
CEO Choi Jong-sik said, “I would like to express my gratitude for the decision to purchase Ssangyong Motor vehicles in Gyeonggi-do and cities and counties in the province,” and “I hope that the government and provincial level will continue to support this decision to reinstate.”
“I won’t let go of the Ssangyong car crisis, is it all over?”
However, despite efforts to normalize management, Ssangyong Motor applied for court management at the end of last year due to extreme financial difficulties, and union members are suffering from a nightmare of layoffs again after 11 years. Ssangyong Motor is striving to find a breakthrough by preparing and pursuing a rehabilitation plan under the premise of a new investment of 280 billion won from the US HAAH (American automobile distribution company), and the union is also actively cooperating to normalize management.
Governor Lee Jae-myung also pledged to help partner companies withstand the liquidity crisis as much as possible until Ssangyong’s rehabilitation plan is successful. Governor Lee Jae-myeong recognizes Ssangyong Motor’s business situation as a “Gyeonggi Province task” and actively supports it because the Ssangyong Motor issue has a huge impact on the local economy in the province.
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| ▲ Governor Lee Jae-myeong held a meeting with Ssangyong Motors CEO Choi Jong-sik and President Moon Seong-hyun of the Presidential Economic and Social Labor Committee at 2:30 pm on the 1st at 2:30 pm to discuss ways to support Ssangyong Motor normalization. | |
| Ⓒ Gyeonggi-do |
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In fact, Ssangyong Motor is one of the key automobile companies located in Gyeonggi-do, both the headquarters and the finished car manufacturing plant. Of the primary partner companies, about 30% of 71 companies are in the province, and 26,000 workers are working for these companies.
In addition, according to the Ministry of Industry, 38% (24 companies) of exclusive trading companies are in Gyeonggi-Incheon. It is estimated to do.
Moreover, due to the nature of automobile manufacturing, technology is accumulated on the premise of safety, so it takes a long time to recover if a chain bankruptcy of an auto parts company occurs.
Accordingly, Gyeonggi-do submitted the’Credit Guarantee Fund Contribution Agreement’ to the Gyeonggi-do Council to overcome the liquidity crisis of Ssangyong Motor’s partner companies, and the Provincial Council passed it on the 17th. Gyeonggi-do plans to start supporting special guarantees in earnest from May after contributing the funds through an extraordinary meeting of the provincial council to organize an additional budget in April.
Previously, Governor Lee Jae-myeong posted on Facebook, saying, “The Ssangyong Motor Company’s dismissal situation brought a great shock and homework to our society. Fortunately, we have reached an agreement to reinstate all of the fired workers, but there are still many wounds to heal and the mountains to overcome. I think there will be. This is why Ssangyong Motors should join forces to normalize.”
Governor Lee continued, “I will take care of Gyeonggi-do until the end. I will not let go of my hand asking if it is all over,” and pledged “I will find out the best possible ways for Gyeonggi-do and give my strength.”