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SsangYong Motor Co. is not qualified to get specialized support under a newly established market stabilization fund as its problems originated before the COVID-19 pandemic, says the Korea Development Bank.
The new 40-trillion-won government fund is designed to support critical industries hit by the pandemic, such as the airline and tourism.
Automakers may also avail of support if it is facing pandemic-induced woes.
SsangYong's attempt to recover from its annual losses were thwarted by the new coronavirus, leading to sharply reduced demand for vehicles at home and abroad.
KDB vice chairman Choi Dae-hyeon said that they may still support Ssangyong, the South Korean unit of Indian carmaker Mahindra & Mahindra if those in charge show determination and exert efforts.
However, many believe that Mahindra is giving up its control of SsangYong.
Choi added that KDB would likely roll over its 90 billion-won loan to SsangYong, set to mature in July if an agreement is reached with its officials.
