The sale of Ssangyong Motor has been concluded as China’s Shanghai Automotive Industry Corp. (SAIC) and creditors of the troubled South Korean automaker agreed to trade the company for $US500 million on Thursday.

The Korea Times said the two parties held a ceremony to sign the formal contract for the sale in central Seoul.

SAIC has taken over the automaker after purchasing the 48.9% stake in Ssangyong Motor the creditors had owned for 10,000 won per share, according to Samil Accounting Corp., which is in charge of the sale.

SAIC consented to employment guarantees for all Ssangyong employees, to maintaining current manufacturing facilities and a certain amount of investments for long-term development of the firm, Samil told the paper.

SAIC also agreed that Ssangyong will be able to use SAIC’s marketing infrastructure in China for Ssangyong’s advance into the world’s fastest growing market.

SAIC obtained a permit from the Chinese government for the takeover last December. It was selected as the preferred bidder in July, through a sales process resumed in early June, nearly three months after China’s large chemical company Lanxing Group, the first prime bidder, was disqualified.

With the sale, Ssangyong is on its way to becoming a world-class recreational vehicle producer by preparing production capacity of 400,000 units per annum in 2007, hoping to dismantle the current market domination by Hyundai Motor and Kia Motors, the Korea Times said.