Hanoi (VNA) – The Republic of Korea(RoK) will decide on the scope of its aid package for General Motors (GM) Co.’sKorean unit after looking into the company’s financial situation and long-terminvestment plan, Yonhap news agency cited government sources as saying onFebruary 22.
Last week, GM announced to close its factory inGunsan to the southwest of Seoul and decide the fate of its three others in theRoK after consulting with the RoK government, shareholders and GM labour unionsover restructuring plans and support measures.
The Detroit-based automaker proposed a2.7-billion-USD debt-for-equity swap and 2.8 billion USD in investment over thenext 10 years in return for financial aid through the state-run KoreaDevelopment Bank (KDB), which holds a 17 percent stake in GM Korea, and othertax benefits.
Also on February 22, Deputy Minister of FinanceKoh Hyeong-gwon held a meeting with GM Executive Vice President Barry Engle todiscuss the automaker's long-term business plan in the nation.
The two sides have agreed to appoint theauditing firm Samil PwC to conduct due diligence within weeks. The audit ispart of efforts to figure out the exact amount of GM Korea's debt to headquartersand its subsidiaries and whether it's proposed business plan is viable.
In 2017, sales of GM Korea declined 12 percentto 524,547 units.-VNA
Last week, GM announced to close its factory inGunsan to the southwest of Seoul and decide the fate of its three others in theRoK after consulting with the RoK government, shareholders and GM labour unionsover restructuring plans and support measures.
The Detroit-based automaker proposed a2.7-billion-USD debt-for-equity swap and 2.8 billion USD in investment over thenext 10 years in return for financial aid through the state-run KoreaDevelopment Bank (KDB), which holds a 17 percent stake in GM Korea, and othertax benefits.
Also on February 22, Deputy Minister of FinanceKoh Hyeong-gwon held a meeting with GM Executive Vice President Barry Engle todiscuss the automaker's long-term business plan in the nation.
The two sides have agreed to appoint theauditing firm Samil PwC to conduct due diligence within weeks. The audit ispart of efforts to figure out the exact amount of GM Korea's debt to headquartersand its subsidiaries and whether it's proposed business plan is viable.
In 2017, sales of GM Korea declined 12 percentto 524,547 units.-VNA
VNA
