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KDB open to supporting SsangYong
Korea Development Bank (KDB) Chairman Lee Dong-gull speaks during an online press conference at the state-run bank's headquarters in Seoul, Monday. / Courtesy of KDB
By Park Jae-hyuk
By Park Jae-hyuk
Korea Development Bank (KDB) Chairman Lee Dong-gull hinted Monday the state-run bank is still open to offering financial support to HAAH Automotive Holdings, which seeks to acquire the cash-strapped SsangYong Motor.
In response to questions on whether the creditors of SsangYong including KDB were asked for such support and whether the creditors have any plans to provide assistance if the carmaker finds a new owner, the chairman declined to give a direct answer.
“I cannot mention the name of a certain company, and regarding those issues, we are hearing from them through both official and unofficial channels,” he said at an online press conference.
HAAH is said to have requested SsangYong creditors to extend maturing debts and reset the stakeholder position to give it control before it makes an investment. In lieu of HAAH's detailed investment plan and its commitment to the Korean car manufacturer, KDB is expected to be considering offering some financial help.
The chairman, however, maintained a cautious stance, saying he cannot confirm it at this point.
“I heard about the company's proposal to acquire SsangYong, but the negotiation is underway between Mahindra and the potential investor, so it is not a matter in which we should get involved,” he said. “The essence of the restructuring of SsangYong will be its sustainability.”
Regarding the sale of Asiana Airlines which ended in failure after HDC Hyundai Development Company decided not to acquire the air carrier, the chairman said HDC has yet to decide whether or not to start its legal fight with the airline to recover its 250 billion won ($213 million) deposit.
He added the creditors will decide whether or not to sell Air Busan and Air Seoul separately from Asiana at an appropriate moment. He reconfirmed the government-run relief fund will not be used for Eastar Jet, a low-cost carrier which also failed to find a new owner after Jeju Air abandoned its acquisition plan.
During the press conference, Lee apologized again for toasting the ruling party's hegemony at a gathering to commemorate the publication of a biography of former Democratic Party of Korea Chairman Lee Hae-chan.
Promising to be more discreet about his remarks, he said KDB will focus on countermeasures against the COVID-19 pandemic and the Korean New Deal during his second term as chairman.