SOUTH KOREA: KDB to offer fresh loans to Ssangyong
The state-run Korea Development Bank (KDB) has said it will provide financial aid worth 130 billion won (US$104 million) to help Ssangyong normalise its operations.
Ssangyong has asked for emergency funding of up to 150 billion won from the KDB to cover its restructuring expenditures and develop a new compact sport utility vehicle.
But the bank has rejected its fund request for vehicle development.
"The bank has decided to provide funds to facilitate the company's restructuring effort, including severance payments," a KDB official said. "We will take its manufacturing facilities as collateral for the new loan."
According to the Korea Herald, Ssangyong owes the KDB 240 billion won.
Ssangyong has today resumed vehicle production after workers ended a 77-day factory occupation last week.