GM Proposes $2.8 Billion, 10-Year Investment in South Korea

Moon Jae-in says General Motors factory shutdown will be a blow to regional economy

South Korea's trade minister Paik Un-gyu had said on Wednesday that the government has asked for an audit into General Motors "opaque" management in the country in the wake of the auto maker's decision to shut down a factory in a city southwest of Seoul.

The debt for equity swap would allow GM's business in South Korea to continue operating. The state-run Korea Development Bank owns a 17 percent stake in GM Korea. Watchers say KDB should have known about the automaker's financial predicament and sounded the alarm long before GM made its surprise announcement.

The U.S. automaker announced last week it would shut down a factory in Gunsan, southwest of Seoul, and that it was mulling the fate of its three remaining plants in South Korea.

South Korea's trade minister said the government has also asked for an audit into GM's "opaque" management in the country.

Lim said that the union is now focused on pressuring GM to put forward a turnaround plan in South Korea, as the company weighs its future in the country.

On Tuesday, Reuters reported GM had offered to convert debt of around $2.2 billion owed by its ailing South Korean operation into equity in exchange for financial support and tax benefits from Seoul, four sources with direct knowledge of the matter said.

GM has left markets deemed unprofitable in recent years, including markets in Europe and Russian Federation, according to Reuters.

Canada's Virtue/Moir win second Olympic gold in ice dance
Humphries of Calgary is trying to become the first bobsledder, male or female, to win Olympic gold three times in the same event. But we've known that ability around here for a long time - 20-plus years, really. "It's a really warm feeling".

"As we are at a critical juncture of needing to make product allocation decisions, the ongoing discussions must demonstrate significant progress by the end of February, when GM will make important decisions on next steps", he said.

Lim Han-taek, the head of GM Korea's union, told Reuters that workers would go on strike if the company decides to pull out of South Korea entirely.

Engle has asked for a meeting on Thursday with the trade minister, trade minister Paik told lawmakers.

Last week, the local carmaker's parent, General Motors Co., announced it will shut down its underutilized plant in Gunsan, one of the automobile giant's four vehicle assembly plants in South Korea.

Paik added that taxpayers' money would not be wasted in government efforts linked to the GM issue. The union leader said in an interview that he believed in the possibility of GM leaving the country. When GM left other markets, they did so boldly.

GM Korea posted a total of 1.9 trillion won in net losses between 2014 and 2016.

Related News:

  • Flu Shot During Pregnancy Poses No Harm to Baby

    Flu Shot During Pregnancy Poses No Harm to Baby

    HHD is offering flu shots at its health centers to people in high-risk groups on a sliding scale basis ranging from free to $15. You can get the Tdap and flu vaccines while pregnant and it won't harm your baby, an extensive new study confirms.
    Prime Members Now Earn 5% Cash Back at Whole Foods

    Prime Members Now Earn 5% Cash Back at Whole Foods

    All the cardholders get back 2% on restaurants, gas stations and drugstores while 1% for all other purchases, notes TechCrunch. Amazon has steadily introduced various cross-selling opportunities between its empire and Whole Foods.
    Israel strikes Gaza after blast wounds four soldiers

    Israel strikes Gaza after blast wounds four soldiers

    Netanyahu will visit the White House next month, a senior U.S. administration official told AFP on Friday. At least four Israeli soldiers were injured when a patrol was hit in an IED explosion in the Gaza Strip.
  • Is 'The Walking Dead' Losing a Main Character?

    Is 'The Walking Dead' Losing a Main Character?

    The move by Cohan and company might be a bold power play to up AMC's offers for the actress' next contract. Or, alternatively, she could just walk away from it completely, given she'll have another show to work on.
    Merkel host Turkish PM amid hopes for better relations

    Merkel host Turkish PM amid hopes for better relations

    Yucel, who has both German and Turkish citizenship, had been accused of writing propaganda in support of terrorism. The spokeswoman said that Berlin had not agreed to any "dirty deals or other arrangements" to secure the release.
    Iran, India sign documents to enhance bilateral ties

    Iran, India sign documents to enhance bilateral ties

    They stressed that terrorism can not and should not be associated with any religion, nationality or ethnic group. Modi and Rouhani also released a joint postage stamp depicting the Kandla port in India and the Chabahar port.
  • Japanese 'baby factory' dad wins custody of 13 Thai surrogate children

    Japanese 'baby factory' dad wins custody of 13 Thai surrogate children

    Shigeta had asked the court to grant him sole custody and produced evidence to support his financial credentials. The law firm that represented him there, Siam Premier International, did not return a request for comment.
    Russian men's hockey squad trounces U.S.  4-0 in Pyeongchang

    Russian men's hockey squad trounces U.S. 4-0 in Pyeongchang

    The Russian win was the largest margin of victory in an Olympic men's hockey tournament since Canada beat Austria 6-0 in 2014. The U.S. spent the rest of the second period unable to convert on a delayed-penalty chance and a couple of power plays.
    Glass building at Apple headquarters causing headaches for employees

    Glass building at Apple headquarters causing headaches for employees

    And according to a new report from Bloomberg , the glass is so flawless and unobtrusive that employees keep walking into it. Apple Park was designed by famed architect Norman Foster, based on a vision by late company co-founder Steve Jobs .
  • PM Modi lays foundation stone of Navi Mumbai Airport

    PM Modi lays foundation stone of Navi Mumbai Airport

    Presently, there are 450 aircraft operating in the country, but that number will more than triple in the next few years. He said, the government is focusing on the aviation sector with the aim to make air travel affordable for common man.
    Manhandling Delhi Secy is 'shameful': Sheila Dikshit

    Manhandling Delhi Secy is 'shameful': Sheila Dikshit

    The IAS officers association met Baijal on Tuesday and lodged a protest over the issue. AAP leader Ashish Khetan claimed that the mob had first attacked him and then Hussain.
    Missing 4-year-old girl found safe in Alabama

    Missing 4-year-old girl found safe in Alabama

    A man accused of kidnapping a 4-year-old girl and leading police on a chase from Alabama to MS will return to SC to face charges. Prosecutor Scarlett Wilson said Evans has been charged with kidnapping and that she expected to file more charges.

Most liked

Latvian central bank chief is released on bail
ABLV said in a statement in response on Tuesday that FinCen had referred to unfounded and misleading information about the bank. As Ilmars Rimsevics headed for release on bail, Prime Minister Maris Kucinskis heaped pressure on him to step aside.

United Kingdom won't be like 'Mad Max' after Brexit, minister says
He also intends to urge for a maintained strong partnership with the United Kingdom and the European Union on matters that involve principles and laws.

Police name PM Benjamin Netanyahu associates in Israeli corruption probe
Sara Netanyahu was under investigation at the time for a range of alleged offenses in the Prime Minister's Residence Affair. He is accused of receiving lavish gifts from Hollywood mogul Arnon Milchan and Australian billionaire James Packer.

Airline agent named Miracle credited with saving 2 teens from human trafficking
Sanderson asserts that Drey probably used photos of a different person and that the case would likely not be persecuted. Deputies reunited the girls with their parents and explained they were likely victims of attempted sex trafficking.

Justice Thomas delivers pro-gun rant just days after the Parkland shooting
The challengers specifically questioned the state's interest in the cooling off period for individuals who already owned firearms. According to court documents, California's "cooling off" period is the second-longest in the country, The Hill reported.

U.S. vows investigation into deadly Syria attack involving Russian mercenaries
But the presence of the Russian contractors adds an element of unpredictability. Most are Russian citizens, though some have Ukrainian and Serbian passports.

EA Officially Announces Burnout Paradise Remastered Releasing in March
But Electronic Arts soon moved Criterion Games over to work on the Need for Speed franchise, putting Burnout on the back burner. Burnout Paradise Remastered will be released on Xbox One on March 16th, 2018 for £39.99 or regional equivalent.

Buccaneers release RB Doug Martin after six seasons
As a result of his resurgence, Martin inked a five-year, $35.75 million extension with the Bucs. There will likely be plenty of suitors for the 29-year-old running back.

Presidents Day 2018: Alabama holiday snubs Lincoln
As for President Trump, he is spending at least part of the day at his Florida golf course, according to national reports. All of the Monday holidays fall on the Monday nearest the actual date, except one: Washington's Birthday .

West Brom players accused of stealing taxi in Spain
THE West Brom stars who drove off in a taxi had told the cabbie to get them two burgers each, it was claimed yesterday. A source said: "Police have not accused them of taking the taxi with the intention of keeping it.

Tiger Woods shoots second-round 76, misses cut at Genesis Open
I must have covered this event about a dozen times but there has never been a buzz like the one over the first two days. It will be just his 25th career missed cut on TOUR in 330 starts once the second round is finished early Saturday.

John Kelly Outlines Improvements For Security Clearance Process
Kushner's ability to continue to do the very important work he has been assigned by the President", he added. Porter's ex-wives provided photographs of injuries they say they received during the alleged abuse.

Winter Olympics 2018: What to watch Friday, Feb
It's the first time NBC has been No. 1 in total viewers during a season since it won the 2001-02 season 16 years ago. Over the first five days of the Olympics , the prime-time audience is about 24 million on television and cable.

Men's basketball claims another win over top-25 team
Wisconsin returns to action Monday with Minnesota visiting the Kohl Center, and Purdue hosts Penn State one day prior. But with three road games in the last four, there are certainly plenty of potential road blocks along the way.

Shaq Fu Reborn - The Legend Returns With a New Trailer
Additionally, anyone who purchases NBA Playgrounds on the Switch before June 10 will be gifted a copy of the new Shaq Fu for free. According to one report , the developers behind Shaq Fu: A Legend Reborn encountered unspecified licensing issues.