SsangYong has completed the repayment of its rehabilitation debt following its acquisition by the KG Group. This marks the end of the corporate rehabilitation procedure, which began in April 2021 and secures the future of the beleaguered manufacturer.
The company aims to increase sales and achieve profitability swiftly. SsangYong has already laid the foundations for its business stabilisation and future growth, thanks to its successful acquisition and the completion of the corporate rehabilitation process.
SsangYong has appointed Kwak Jea-sun as its new chairman, with Jeong Yong-won as CEO. The company has also implemented further executive appointments and organisational reforms to adapt actively to new business challenges.
The KG Consortium, SsangYong’s staff, and management signed a special three-party agreement emphasising job security and long-term investment. This collaboration aimed to strengthen labour-management cooperation, solidify labour relations, and avoid past mistakes in this area.
The KG Group completed a second round of capital investment to repay priority claims and support its operational financing plan. With the rehabilitation debts repaid, the company is rapidly improving its financial structure and moving towards swift business normalisation.
SsangYong’s future growth will be driven by its commitment to electrification, with additional capital funding from the KG Group
. The brand is also concentrating on growth through the successful international launch of its new Torres SUV. The domestic unveiling of Torres has been well-received, contributing to increased sales and reinforcing the brand’s global presence. SsangYong is also progressing with continuous investment and technology development for electric vehicles, with the U100 scheduled for release next year.
“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,” said a statement from SsangYong Motor officials. “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.”
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