Ssangyong Motor is pushing for a 50 billion won paid-in capital increase for development of new vehicles.
The company held an extraordinary shareholders' meeting at its Pyeongtaek plant in Gyeonggi Province on Oct. 25 and they voted for an approval to issue stocks that were below par value. The amount to be issued is less than 50 billion won, the class of shares is ordinary shares, and the lowest issuance amount is 4,200 won.
Ssangyong Motor plans to fix details of the scheduled issuance, the number of shares and the value of the shares through the board of directors and finalize the project by February 24 next year.
Ssangyong`s latest drive to increase its capital is aimed at securing investment expenses necessary for the development of new vehicles. Ssangyong Motor is planning to release the Rexton Sports Long Body model and the successor of the Korando C model (development name C300) next year.
It plans to introduce electric vehicle model based on Korando C in 2020 and is currently developing self-driving technology at the level 3 with a goal of mass production in 2022.
Attention is also focusing on whether Mahindra, the major shareholder of Ssangyong Motor in India, will participate in the paid-in capital increase. Mahindra, which acquired Ssangyong in 2011, participated in the 80 billion won paid-in capital increase in 2013.