Korea Development Bank, Ssangyong Motor’s 90 billion won loan extension ‘contemplation’ … Delayed completion

The Korean Development Bank is struggling over whether the 90 billion won loan from Ssangyong Motor will expire. With only 90 billion won in loans due on the 21st, they decided to observe the situation rather than immediately conclude.

The reason why Sangeun is struggling to extend maturity is simple. This is because the principal and interest on loans from foreign financial institutions were past due prior to the maturity of the KDB loans. If Ssangyong Motor does not pay off the bank loan by this day, it will be due from the 22nd.

Ssangyong Motor announced on the 15th that the principal and interest on the loans from JPMorgan, BNP Paribas and Bank of America Merrill Lynch had expired. The total amount of delinquency is 60 billion won. It is approximately 20 billion won for JPMorgan, 10 billion won for BNP Paribas, and approximately 30 billion won for Bank of America Merrill Lynch.

The Korean Development Bank is in a position where it is difficult for the KDB to extend the loan maturity first, as the external borrowing problem has not been resolved. This is because banks generally recover funds for defaulting companies rather than extending the maturity of their loans.

Mahindra of India, the largest shareholder in Ssangyong Motor, is known to be discussing maturity extensions by contacting foreign institutions. If the foreign debt problem is resolved, the KDB is likely to extend the maturity.

A KDB official said: “We will see and judge what Ssangyong will do because of the bad debt problem of foreign financial institutions.”