The South Korean manufacturer, Ssangyong, which previously experienced financial problems, finally succeeded in getting a new investor. Recently, KG Group has just acquired Ssangyong and is preparing to make a comeback by launching its newest product.
SSangyong will prepare a new electric car as their capital to increase the reputation of the South Korean brand. In addition, under this new ownership, Ssangyong will also pay off their debt of up to US$340 million from the previous owner.
Later, the debt will be paid to the Seoul rehabilitation court and has coordinated with creditors and partners who will help rehabilitate the company. As is known, the previous owner of Ssangyong, namely Mahindra, failed to pay off the company’s debt caused by the Covid-19 pandemic. So the sustainability of this one brand was a big question mark.
However, in the hands of this KG Group ownership, Ssangyong was finally able to revive. Apart from presenting several electric car products such as Korando e-Motion and Musso Ute, Ssangyong will also create a special factory for making electric car batteries. The plan is for these two products and the electric car battery assembly manufacturer to be ready for operation in early 2024.
Not to forget, Ssangyong has also appointed a new chairman, namely Kwak Jea-Sun and a new CEO, namely Jeong Yong-Won who will be the two leading people at Ssangyong. In fact, the KG Group plans to seek additional investors as a long-term plan for those who want to strengthen their line of business, which had been neglected due to the economic crisis and the pandemic.