Ssangyong Motor, top shareholder to discuss fund provision

SEOUL, Jan. 3 (Yonhap) -- A plan to salvage Ssangyong Motor Co. may emerge as
early as next week as a top executive at the ailing automaker was scheduled to
meet with heads of its largest shareholder in China over the weekend, according
to informed sources Saturday.
Hai Tao Zhang, one of the company's three co-chief executives, left for China
earlier in the day to meet with officials at the Shanghai Automotive Industry
Corp. (SAIC) to discuss a wide range of issues on the company's management,
according to informed industry officials.
The parties were expected to discuss various means of normalizing management,
including measures involving possible restructuring and provision of fresh funds
from Shanghai Automotive. Zhang plans to return to Seoul on Sunday.
The troubled carmaker, on the verge of liquidation, has been in negotiations with
Shanghai-based SAIC for weeks over fresh funds in exchange for potential job
cuts, but no progress has been reported so far.
On Monday, two Chinese media outlets reported SAIC was preparing to exit
Ssangyong, but Ssangyong officials denied the reports. SAIC acquired a 51-percent
stake in the smallest carmaker in South Korea in late 2004.
Ssangyong is expected to post a loss of up to 100 billion won (US$75.3 million)
this year. The liquidity shortage forced the company to delay salary payments and
cut employee benefits.
odissy@yna.co.kr
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