South Korea Says SAIC Seeking Help for Ssangyong
China's Shanghai Automotive Industry Corp. has asked the South Korean government to help secure new loans for Ssangyong Motor Co., an official said Friday, as South Korea's smallest automaker struggles to stave off a potential liquidity crisis, the Associated Press reported. SAIC, one of China's biggest automakers, holds a majority stake in troubled Ssangyong Motor, which has been buffeted by falling sales and red ink. The Chinese company sought South Korea's help to ensure Korea Development Bank, Ssangyong's main creditor, offers new loans to Ssangyong, said Lee Dong-geun, deputy minister for industry at the Ministry of Knowledge Economy. As a state-run bank, KDB is likely to give new loans to the ailing Ssangyong if requested by the government, experts said. But a senior KDB official handling the case ruled out any financial aid to Ssangyong unless the Chinese parent company provides assistance first. Read more.