SEOUL, May 22: Discussions between General Motors Corp and Ssangyong Motor Co are nowhere near the point of public comment, the president of General Motors-Korea told Reuters on Thursday.

Alan Perriton said GM had concluded no agreement with Ssangyong and he didn't understand why Ssangyong would be making public statements at this stage.

He was referring to remarks by a Ssangyong Group executive that discussions were underway with GM and other foreign companies about a $300 million capital investment in Ssangyong Motor.

"We've had discussions with Ssangyong, but they haven't proceeded to any level where we would be making confirmations or issuing statements," Perriton said. "Ssangyong is just one of the South Korean car companies we're having discussions with."

Cho Nam-do, a vice president of the Ssangyong Group, told Reuters earlier on Thursday that no agreements had been concluded and that he was not suggesting that GM would be the largest investor in Ssangyong Motor. Cho said the other foreign companies included several Southeast Asian companies owned and run by ethnic Chinese businessmen.

"We are discussing with many foreign companies and General Motors i s only one of them," Cho said.In a front-page story on Thursday, the Korea Economic Daily, a major business newspaper, quoted an unidentified Ssangyong official as saying the company would conclude by June negotiations on the capital investment by GM and others. The paper said the deal with GM was at the centre of Ssangyong's plan to reduce its debt-to-equity ratio to about 1,000 per cent from 10,000 per cent at the end of 1996.

"We are discussing with many foreign companies and General Motors is only one of them," Cho said. In a front-page story on Thursday, the Korea Economic Daily, a major business newspaper, quoted an unidentified Ssangyong official as saying the company would conclude by June negotiations on the capital investment by GM and others. The paper said the deal with GM was at the centre of Ssangyong's plan to reduce its debt-to-equity ratio to about 1,000 per cent from 10,000 per cent at the end of 1996. Ssangyong Motor, which specialises in making four-wheel drive vehicles and trucks, posted a net loss of 228.49 billion won in 1996, compared with the previous year's 126.23 billion loss.

In March the automaker, a joint venture between Ssangyong and Germany's Mercedes Benz, a unit of Daimler-Benz AG, invited foreigners to purchase up to 49 per cent of the company.

Later in March, Ssangyong Motor said it would sell its headquarters building and other real estate and assets because of crushing debt, estimated at more than three trillion won.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.