Ssangyong Motor may get Korean govt support

Shanghai, December 26 (Gasgoo.com) SAIC's Korean unit Ssangyong Motor Co, the troubled sport-utility vehicle maker, may get support from the South Korean government, Reuters reported on Friday.

The report quoted a Korean ministry's new year policy release as saying the government "will consider measures to lend liquidity support to some automakers, centered around creditor institutions."

SAIC vice chairman Jiang Zhiwei is expected to meet with Lim Chae-min, the first vice minister of Knowledge Economy, this afternoon and will urge the Korean government and banks for funding if it drastically restructures the ailing carmaker including laying off half the staff.

An informed company source from SAIC explained earlier that Ssangyong Motor is an independant listed company and should have the ability to run its own business. The source said SAIC expects the South Korean government to provide help for the automaker, just as what the US, Sweden and Canada governments have already decided to do.

But Korea Development Bank, the main creditor of Ssangyong Motors, on Thursday told Ssangyong it can provide no new loans unless SAIC injects 320 billion won into Ssangyong first because the Chinese auto giant still owes Ssangyong 120 billion won for technology transfers and that Ssangyong has signed credit lines worth W100 billion each with the Bank of China and the Industrial and Commercial Bank of China.