U.S. automaker General Motors(GM) has reportedly accepted South Korea's preconditions for providing fresh funds for its troubled Korean unit.  

The Seoul government and the Korea Development Bank(KDB) said earlier that they will provide support for GM Korea on the condition that it stays in the Korean market for at least ten years. 

They also demanded that the state-run KDB, GM Korea’s second-largest shareholder with a 17 percent stake, has the right to veto the automaker's major decisions even if its shareholding falls below 17 percent through a possible debt-for-equity swap. 

According to sources in the government and KDB on Wednesday, GM gave a positive response to the demands. 

If things proceed smoothly, GM and KDB are likely to sign an initial funding agreement Thursday or Friday and conclude a final deal after the ongoing due diligence is completed early next month.