South Korean banks to help car makers

SEOUL, Dec. 28 (UPI) -- Banks in South Korea are expected to help troubled car makers that are willing to restructure, sources say.

Among them is state-run Korea Development Bank, which says it is willing to help automakers hit by the global decline in sales, Yonhap News Agency reported Sunday.

"Car makers have started to make requests about possible support, but before aid is given, they must streamline operations," a KDB spokesperson said.

Yonhap noted that among South Korean car makers, Ssangyong Motor Co. and GM Daewoo Auto & Technology Co. are the most cash-strapped.

While Daewoo has about $600 million in syndicated loans that it can take out under a deal reached with financial institutions in 2002, Ssangyong says it will hold talks with union members, creditors and Shanghai Automotive Industry Corp., its main shareholder, to try to save the company.

Hyundai Motor Co. and Kia Motors Corp. have not requested government assistance.