Ssangyong Motor

Ssangyong Motor, South Korea’s fourth-largest automaker, will end its debt work-out programs this week, five
years after it fell into financial turmoil following the Asian economic crisis.

Ssangyong has focused on increasing shares in the large car and sport utility vehicle markets. It has kept the
balance in the black for three years in a row until last year, following a painful restructuring process.

``We will finish the work-out programs on Wednesday as soon as SAG completes the remaining payment for
shares of Ssangyong,’’ a Ssangyong official said. SAG took over the firm last year for $523 million.

``SAG is scheduled to pay $400 million to Korean creditors of Ssangyong on Wednesday. The payment
means Ssangyong will be able to make a new start as a financially-stable firm and as a member of SAG,
which has a well-established global sales network,’’ the official said.

Ssangyong will hold a shareholders’ meeting on Wednesday to form a new management line-up and
establish some new rules for domestic and overseas business.

Ssangyong officials said the firm will focus on developing its research and development capabilities through a
close partnership with SAG and flexing its muscles in the Chinese market.

Last year, Ssangyong agreed with SAG to use the parent’s marketing infrastructure in China for its advance
into the world’s fastest growing auto market.

In October, SAG took over the automaker after purchasing a 48.9-percent stake. Creditors accepted the deal
after SAG made employment guarantees for all Ssangyong employees and agreed to maintain its
manufacturing facilities in South Korea.

``Ssangyong plans to shape itself as a leading auto firm by developing export markets for its luxury sedan
Chairman and the SUV Rexton,’’ the Ssangyong official said.

- Source from The Korea Times (Jan 23, 2005) -