Kia Motors Seeks Court Receivership

Kia Motors Corp.’s bankers said Wednesday they would seek court receivership for South Korea’s second largest carmaker so that new management can be installed.

Finance and Economy Minister Kang Kyong-shik said the government will invest $370 million in the car company and take over management.

“The decision was made to stabilize the money market and recover national credit,” Kang told a news conference, referring to recently lowered international credit ratings for South Korea and its banks.

The government had previously steered clear of intervening in business disputes.

But government officials asked creditor banks in a meeting that ended early Wednesday to apply for court receivership for the car maker, which has flirted with bankruptcy since late July.