Ssangyong Motor emerges from insolvency with acquisition by KG Group

Ssangyong Motor Corp. announced Friday that it has made the final repayment of a bridge loan that has kept the South Korean automaker alive since it became insolvent in late 2020.

Ssangyong, which does not operate in the U.S., ran out of money after its previous backer, India's Mahindra & Mahindra, halted further investment while it sought a buyer.

An initial deal to sell Ssangyong Motors to a consortium led by another Korean automaker, Edison Motors, fell through in May.

Ssangyong was then sold in June to KG Group, a South Korean conglomerate specializing in chemical and steel production, which acquired 58.85% of Ssangyong for 335 billion won ($253 million) and pledged to invest 564 billion won ($426 million) to fund operations. to be invested in the project.

After the September shareholders' meeting, Kwak Jae-sung was appointed chairman and Chung Young-won CEO.

Ssangyong now plans to focus on transitioning to an EV lineup in order to return to profitability. Ssangyong launched its new gas-powered Tres SUV in June, and plans to launch an electric vehicle next year.

It has also announced plans to build an auto plant in Saudi Arabia.