Mahindra & Mahindra's managing director Pawan Goenka is in South Korea this week to help secure funding for its struggling subsidiary Ssangyong Motor.

The Indian car maker in 2011 acquired a 73% stake in the then bankrupt Ssangyong Motor which predominantly manufactures SUVs for global markets.

The South Korean subsidiary's sales fell by 6.5% to 132,799 units last year from 141,995 units in 2018 on weaker sales of key models such as the Tivoli and G4 Rexton.

Goenka, who also serves as Ssangyong's chairman, planned to meet with creditor banks including state-owned Korea Development Bank (KDB) during his visit to discuss additional financial support for Sssangyong.

KDB has rolled over KRW10bn of the KRW30bn of debt it was due from Ssangyong at the end of 2019, according to local reports, with a further KRW90bn of KDB debt set to mature at the end of 2020.

Mahindra is also considering injecting a further KRW230bn into SsangYong Motor to help stabilise the company.

Ssangyong has a scheduled board meeting for 30 January, which Goenka will not attend, according to a SsangYong Motor spokesman.

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