Ssangyong Motor receives a special fund of 40 billion won this month from Mahindra & Mahindra, the major shareholders of India.

Ssangyong Motor said today (12th) that it held a temporary board of directors on the 10th and finally decided on Mahindra's 40 billion won new funding plan.

According to Ssangyong Motor, new financing will be dealt with as a loan first to resolve the urgent liquidity issue and will be converted to capital as soon as the laws and regulations of Korea and India allow.

Earlier, Mahindra withdrew its plan to inject new capital worth KRW 230 billion, which the first board of directors decided to apply to Ssangyong Motor, and instead considered to inject a one-time special fund of up to 40 billion KRW over the next three months. I decided to do it.

An official from Ssangyong Motor explained, "The chairman of Ssangyong Motor's board of directors, Pawan Goenka Mahindra, explained on the 10th that at the temporary meeting of Ssangyong Motor, Mahindra decided to inject a special fund of 40 billion won this month, and Ssangyong Motor's board of directors approved it." I did.

Ssangyong Motor expected to secure liquidity as Mahindra's promise of KRW 40 billion in support was decided early, and market anxiety such as Mahindra's withdrawal from Ssangyong Motor would be resolved.

Ssangyong Motor said, "It will be a chance to confirm Mahindra's willingness to strengthen the support while eliminating the suspicion of withdrawal through funding and maintaining a relationship with Ssangyong Motor."

Ssangyong Motor also announced that it had signed an agreement to sell Ssangyong Motor's Busan Logistics Center on the 7th.

The amount of the sale is about 20 billion won, and it is explained that the price will be secured by Ssangyong Motor in this month.

Ssangyong Motor said, "We expect that the decision of the board of directors will give us momentum to implement various measures to normalize management, such as finding new investors."

Ssangyong Motor estimates that it will need 500 billion won over the next three years to normalize its management.