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SsangYong Motor will sell its 850,000 square meters plant site in Pyeongtaek as part of self-rescue efforts, according to the local government.
The plant, which was constructed in 1979, is valued at 900 billion won.
The city government of Pyeongtaek has signed a memorandum of understanding with the court-appointed manager of SsangYong and its labor union regarding the sale of the site.
The debt-ridden automaker has been under court receivership since April after its Indian parent Mahindra & Mahindra failed to sell a 75 percent stake in it.
SsangYong will receive administrative support construction and relocation from the city government when it builds a new factory in Pyeongtaek.
Jung Jang-seon, mayor of Pyeongtaek, vowed to support SsangYong Motor to grow into a global company that contributes to the local economy.
The new plant that Ssangyong intends to put up will focus on manufacturing green and self-driving cars, according to Chung Yong-won, the court-appointed administrator.
