Union chief of Ssangyong Motor urges workers to vote for strike

(ATTN: ADDS SAIC, Korea Development Bank resume negotiations over a possible
restructuring plan, share reaction in paras 9-10)
SEOUL, Jan. 5 (Yonhap) -- The chief of Ssangyong Motor Co.'s union called for
members Monday to go on strike against potential job cuts amid concerns that the
ailing carmaker may face liquidation unless its Chinese parent injects fresh
capital.

China's state-run Shanghai Automotive Industry Corp., which owns a 51-percent
stake in Ssangyong, has been under pressure to provide new funds to keep the
troubled automaker afloat.
Local newspapers, citing unnamed company sources, have reported that SAIC had
requested Ssangyong to cut as many as 3,000 workers, or nearly half of its
factory jobs in exchange for fresh capital.
"Only by a landslide vote for a strike can we defend ourselves and thwart SAIC's
conspiracy," Han Sang-kyun, the union's leader, told members in a statement
posted on its Web site.
"Let's show our strength against the Chinese owner that has cheated us over the
past five years," Han said.
The union's some 5,200 members were voting Monday on the strike plan. Balloting
was due to close on Tuesday.
Han also threatened to disclose allegations of illegal accounting and technology
transfer, which he says were done by SAIC.
The fate of Ssangyong is likely to be decided on Thursday, when it plans to hold
a board meeting.
Also on Monday, SAIC and Ssangyong's main creditor Korea Development Bank resumed
negotiations over a possible restructuring plan, company officials said. The
state-run KDB has called for SAIC to provide financial support to Ssangyong as a
precondition to extending loans for the cash-strapped carmaker.
On the news that SAIC and KDB resumed talks, shares of Ssangyong jumped 14.57
percent to 1,140 won at one point in afternoon trading.
Last year, vehicle sales at Ssangyong, which has an annual production capacity of
200,000 units, dropped 29.6 percent from a year ago to 92,665 units.
Ssangyong's Chief Executive Officer Choi Hyung-tak has indicated that the
carmaker was quickly running out of cash and may soon file for bankruptcy without
financial support.
Korea Investors Service Inc., a local credit risk appraiser, recently downgraded
its rating for Ssangyong's long-term debt to junk bond status, citing "growing
uncertainty over financial aid" by SAIC.
(END)