SsangYong Motor's biz partners to receive additional financial help

Subcontractors of financially troubled SsangYong Motor Co. will receive additional financial help as the automaker is in search of a new investor.

The state-run Korea Credit Guarantee Fund will provide 25 billion won ($22 million) for SsangYong's subcontractors, raising such help to 75 billion won in total, according to the Ministry of Trade, Industry and Energy.

The move is aimed at maintaining the supply chain for the financially troubled carmaker to support its normalization.

In December, SsangYong filed for court receivership after failing to obtain approval for the rollover of 165 billion won worth of loans from creditors.

It is the second time for SsangYong to be under court receivership after undergoing the same process a decade ago.

Half of SsangYong workers will also go on unpaid leave for two years beginning next month as part of self-help measures. (Yonhap)