Pyeongtaek City Prepares Response Plan Following Ssangyong Motor's Corporate Restructuring Decision

[Suwon Ilbo=Reporter Jung Jun-sung] Pyeongtaek City on the 15th unveiled countermeasures to normalize Ssangyong Motor and overcome regional economic downturn following the decision to initiate corporate restructuring procedures for Ssangyong Motor.

On the 15th, the city held a Ssangyong Motor Revitalization and Livelihood Safety Measures Meeting attended by 18 officials including department heads under the chairmanship of Mayor Jung Jang-seon at the Comprehensive Situation Room.

At the meeting, the city pledged to make all-out efforts to stabilize livelihoods and overcome the regional economic crisis amid concerns that the Pyeongtaek region's economy, where the Ssangyong Motor plant is located, would suffer significant damage from the company's corporate restructuring procedure.

First, given the automotive industry's characteristics, a major economic ripple effect is anticipated should Ssangyong Motor collapse, so the city decided to actively support suppliers.

First, to support suppliers, the city will secure 21 billion won in project funds, increase the loan limit from 500 million won to 1 billion won, and provide interest rate support of up to 2.0 percentage points compared to the existing 0.6 percentage point support.

Additionally, the city decided to implement a special guarantee program for small and medium-sized enterprises to address funding difficulties for companies lacking collateral and to support management normalization. The 2021 special guarantee funds amount to approximately 9.5 billion won, with up to 300 million won in special guarantees possible per company.

The city plans to make recommendations for government support while promoting a petition drive targeting all citizens to continue efforts for Ssangyong Motor's normalization.

Furthermore, Gyeonggi Province, Pyeongtaek City, National Assembly members, provincial and city council members, management, and labor unions will hold a Livelihood Stabilization Measures Meeting for Ssangyong Motor normalization to adopt resolutions on ▲livelihood stabilization ▲labor-management cooperation and ▲urge the government to provide financial support for Ssangyong Motor's restructuring.

Mayor Jung Jang-seon stated, "We will do our utmost to normalize Ssangyong Motor and overcome regional economic downturn."