South Korea’s Ssangyong Motor approves use of $33 million special fund from India’s Mahindra

SEOUL (Reuters) – South Korea’s Ssangyong Motor Co Ltd on Sunday said it has approved the use of a 40 billion won ($32.86 million) special fund raised by its biggest shareholder to help ease liquidity concern amid cooling demand due to the coronavirus.

Ssangyong Motor in a statement said its board approved the use of the fund at a meeting on Friday, and that it will use it to resolve imminent liquidity issues and to relieve market concern.

Last week, Mahindra and Mahindra Ltd scrapped a $423 million investment plan in its struggling South Korean unit as automakers save cash to ride out the coronavirus crisis.

The Indian automaker said it would consider a special one-time infusion over the next three months to help SsangYong continue operating while it finds other sources of funding.

($1 = 1,217.1700 won)