South Korean smallest automaker Ssangyong Motor will shut down its plant for almost three weeks this summer because of sluggish demand for its gas-guzzling SUVs, union officials said Monday.

Both management and union at the Chinese-owned carmaker have agreed to the shutdown from July 31 through August 17 at the plant in Pyeongtaek, 70 kilometres (44 miles) south of Seoul, the union officials told AFP.

Workers will get 70 percent of their regular pay during the shutdown. The paint shop will be refurbished during this period.

Ssangyong, owned by China's Shanghai Automotive Industry Corp., was the only automaker among the country's five players to report a fall in vehicle sales last month.

Its June sales plunged 67 percent from a year earlier to 1,902 units.

It specialises in sport utility vehicles such as the Kyron, Actyon and Rexton models, but demand remains weak as oil prices soar.

Ssangyong is shifting its focus to sedans and plans to introduce five such models by the end of 2010.