The government and GM Korea's subcontractors have held discussions on the difficulties the firms face following the automaker's decision to downsize its presence in South Korea.

The Ministry of Trade, Industry and Energy said a senior ministry official met with representatives of eight subcontractors in Seoul on Thursday.

According to the ministry, the subcontractors said they are struggling to stay afloat and complained that banks are refusing to provide them with new loans or extend existing loans. 

A recent internal survey on dozens of GM Korea's subcontractors showed the operating rates of their facilities and sales in the first quarter fell an average of ten-point-four percent and 16-point-six percent, respectively, from the same period last year. 

Based on the outcome of the meeting, the ministry plans to review possible measures to help the subcontractors after discussions with other related ministries.