Ssangyong Motor has successfully completed its debt repayment through funds acquired from its M&A with the KG Group and is embarking on a new journey as part of the KG family’s enterprises.
With the successful M&A and the conclusion of its corporate restructuring process, Ssangyong Motor has laid a foundation for managerial stabilization and future growth development. The company plans to accelerate its early management normalization by increasing sales and achieving profitability.
In September, Ssangyong Motor appointed Chairman Kwak Jae-sun and President Jeong Yong-won as co-CEOs. In October, to actively respond to changes in the new management environment, the company undertook executive personnel changes and organizational restructuring, implementing swift measures for management stabilization.
Prior to this, in July, the KG Consortium and the Ssangyong Motor labor union signed a special tripartite agreement focusing on employment security and long-term investment, thereby solidifying their cooperative labor relations, which are fundamental to the company’s normalization, and working to avoid past failures.
The KG Group has also solidified its status as the largest shareholder by repaying corporate debts through the first capital increase. In October, a second capital increase was completed to repay public bonds and secure operating funds, accelerating efforts to improve Ssangyong Motor’s financial structure and normalize its management.
Ssangyong Motor expects to build a foundation for future growth, including a transition to electrification, through additional capital increases from the KG Group.
Meanwhile, Ssangyong Motor plans to focus on ensuring successful overseas launches of the Torres, which is receiving positive feedback in the domestic market, and strengthening its global market penetration. The company will also prioritize timely investment and technological development for its electrified models, starting with the U100 expected to be launched next year, to secure future growth momentum.
Ssangyong Motor expressed gratitude to all stakeholders, including the Seoul Bankruptcy Court, creditors, and partners, for their understanding and support during the corporate restructuring process, stating, “We will provide the best service to our customers who believed in and waited for our revival, approaching them as a completely transformed Ssangyong Motor.”
Lee Sang-jin daedusj@autodiary.kr