Hanoi (VNA) – The Republic of Korea (RoK) will decide on the scope of its aid package for General Motors (GM) Co.’s Korean unit after looking into the company’s financial situation and long-term investment plan, Yonhap news agency cited government sources as saying on February 22.
Last week, GM announced to close its factory in Gunsan to the southwest of Seoul and decide the fate of its three others in the RoK after consulting with the RoK government, shareholders and GM labour unions over restructuring plans and support measures.
The Detroit-based automaker proposed a 2.7-billion-USD debt-for-equity swap and 2.8 billion USD in investment over the next 10 years in return for financial aid through the state-run Korea Development Bank (KDB), which holds a 17 percent stake in GM Korea, and other tax benefits.
Also on February 22, Deputy Minister of Finance Koh Hyeong-gwon held a meeting with GM Executive Vice President Barry Engle to discuss the automaker's long-term business plan in the nation.
The two sides have agreed to appoint the auditing firm Samil PwC to conduct due diligence within weeks. The audit is part of efforts to figure out the exact amount of GM Korea's debt to headquarters and its subsidiaries and whether it's proposed business plan is viable.
In 2017, sales of GM Korea declined 12 percent to 524,547 units.-VNA
Last week, GM announced to close its factory in Gunsan to the southwest of Seoul and decide the fate of its three others in the RoK after consulting with the RoK government, shareholders and GM labour unions over restructuring plans and support measures.
The Detroit-based automaker proposed a 2.7-billion-USD debt-for-equity swap and 2.8 billion USD in investment over the next 10 years in return for financial aid through the state-run Korea Development Bank (KDB), which holds a 17 percent stake in GM Korea, and other tax benefits.
Also on February 22, Deputy Minister of Finance Koh Hyeong-gwon held a meeting with GM Executive Vice President Barry Engle to discuss the automaker's long-term business plan in the nation.
The two sides have agreed to appoint the auditing firm Samil PwC to conduct due diligence within weeks. The audit is part of efforts to figure out the exact amount of GM Korea's debt to headquarters and its subsidiaries and whether it's proposed business plan is viable.
In 2017, sales of GM Korea declined 12 percent to 524,547 units.-VNA
VNA
