S.Korea bank calls on SAIC to back Ssangyong

Korea Development Bank has called on SAIC Motor Corp to provide fresh funding and payment guarantees to Ssangyong Motor as a condition for extending new loans to the troubled automaker, a KDB official said on Friday.

The official, who asked to remain anonymous, confirmed a report in the Korea Economic Daily that said KDB had told SAIC (600104.SS) and Ssangyong (003620.KS) that the Chinese car company should provide 120 billion won ($91.99 million) in cash to Ssangyong.

In addition, state-owned KDB has called on SAIC, which owns a 51 percent stake in Ssangyong, to guarantee a combined 200 billion won worth of loans from two Chinese banks for the South Korean carmaker.