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SsangYong Motor Company has completed the repayment of the rehabilitation debt with funds from its acquisition by the KG Group.
The manufacturer became insolvent in late 2020.
It has now completed its corporate rehabilitation procedure 18 months after the start in April 2021.
SsangYong appointed Kwak Jea-sun as its new chairman and Jeong Yong-won as CEO September.
In July, the KG Consortium and SsangYong’s labour and management signed a three-party special agreement focusing on job security and long-term investment. Labour-management cooperation was strengthened to further solidify labour relations and to avoid a repeat of previous failures in this area.
The KG Group also completed a second round of capital investment in October to repay priority claims and as part of its operational financing plan. After repaying its rehabilitation debts, it said that it is accelerating the improvement to the company’s financial structure leading to the swift normalisation of business.
The future growth of SsangYong will be based on the company’s move towards electrification, supported through additional capital funding from the KG Group.
SsangYong Motor officials said: “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 support in successfully completing the corporate rehabilitation procedure, and laying the foundation for the company’s business normalisation. We particularly reach out to our customers to thank them for their loyalty, and as a completely new and transformed business, aim to reward them by providing the best possible customer service, and thank them for their patience.”