South Korea's policy lender, Korea Development Bank, has stressed that liquidity-stricken SsangYong Motor is not qualified for special support under the newly established state fund to help stabilize the market.
Speaking to reporters on Wednesday, KDB Chairman Lee Dong-gull was referring to the 33 billion U.S. dollar government fund to help key industries hit hard by the COVID-19 pandemic, including the airline and tourism industries.
He also explained that money is not necessarily everything for a company's survival, asking the firm to exert more efforts to recover from the large annual losses the company has been posting lately.
SsangYong Motor, the South Korean unit of Indian carmaker Mahindra and Mahindra, has been making efforts to crawl into the black, but the pandemic has led to a sharp drop in demand both at home and abroad.
What's more, Mahindra has also said SsangYong needs new investors, with many pundits hinting that the Indian carmaker could be giving up on the firm.
On a positive note, KDB vowed to extend loan repayment relief for 74 million dollars to SsangYong, which was set to mature in July.
Lee also called for its parent company Mahindra and Mahindra not to deny its responsibility, adding that KDB will be urging them to extend their loan to SsangYong that's set to mature starting this month.
Kim Hyo-sun, Arirang News.