SsangYong Motor Company has completed the 18-month rehabilitation of the business and the repayment of rehabilitation debt with the funds resulting from its acquisition by KG Group on November 11. The company now plans to accelerate the normalization of its early management by increasing sales and quickly turning a profit.
SsangYong’s future growth will be based on the company’s move towards electrification, again supported by additional capital funding from KG Group. The brand is also focused on growth thanks to the successful international launch of its new Torres SUV model.
The unveiling of Torres in the domestic market has been extremely well received and is already leading the way in increasing sales while strengthening the brand’s position in the global market. Ongoing investment and technology development for electric vehicles (EVs) is progressing, with the U100 the first slated for release next year.
SsangYong Motor appointed Kwak Jea-sun as new Chairman and Jeong Yong-won as CEO in September and steps were taken in October to stabilize management with new management appointments and organizational reforms to foster growth development future.
In July, the KG Consortium and SsangYong workers and management signed a special three-party agreement focusing on job security and long-term investment. Union-management cooperation has been strengthened in order to further solidify labor relations and avoid a repetition of previous failures in this area.
KG Group also completed a second round of capital investment in October to repay senior debt and as part of its operational financing plan. After repaying its rehabilitation debts, it accelerates the improvement of the company’s financial structure leading to a rapid normalization of activity.
SsangYong Motor officials commented, “On behalf of everyone at SsangYong Motor, we would like to express our sincere gratitude to all stakeholders, including the Seoul Rehabilitation Court, creditors and partners for their understanding and their support in the success of the company rehabilitation procedure and lays the basis for the normalization of the company’s activities.