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Seoul: GM Must Show Plans to Normalize Management and Investment

Written: 2018-02-20 15:53:26Updated: 2018-02-20 18:03:54

Anchor: While General Motors(GM) Korea demands financial support from the South Korean government to keep its Korea business up and running, Seoul officials and GM Korea's union members are calling for the U.S. auto firm to normalize its management situation and investment.
Oh Soo-young has more. 

Report: Seoul officials said this week that General Motors(GM) Korea needs to prove it can sort out its management problems and continue investing in local operations before the South Korean government decides whether to provide supportive measures.

This comes as the company demands that the South Korea government roll out financial aid to keep its operations running in the country.

In a meeting with reporters in Seoul, Finance Minister Kim Dong-yeon said Tuesday that the government first needs to see a plan from GM Korea to normalize its business operations.

Industry Minister Paik Un-gyu also stated on Monday several preconditions for providing financial support or incentives for the U.S. automaker.

He said it must convey its commitment to new investments and address the lack of transparency in management. 

The minister said that providing incentives for foreign companies should be decided in consideration of the regulations of the World Trade Organization, suggesting that state support for GM Korea should be provided without violating international trade regulations.  

The GM Korea labor union held a press conference on Tuesday, demanding the auto firm withdraw its plan to close one of four factories in the country, invest in capital and facilities and guarantee union participation in due diligence.

On Tuesday, the National Assembly's task force on GM Korea met with Barry Engle, president of GM International.

According to lawmakers who attended the meeting, Engle promised the company will try to maintain 500-thousand units of annual output from its Korean factories. 

He also said it was possible for two new models to be allocated to the Bupyeong and Changwon factories but did not specify whether the assignment would depend on the South Korean government's support. 
Oh Soo-young, KBS World Radio News.

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