The government and General Motors(GM) have decided to inject a rescue fund of over seven billion U.S. dollars into the troubled Korean unit of the U.S. automaker. 

The government said that the decision came on Thursday during a ministerial meeting on enhancing industrial competitiveness chaired by Finance Minister Kim Dong-yeon.

The meeting also devised measures to help GM Korea’s parts contractors and the economy of local regions, which have been hit hard by GM Korea's financial turmoil.  

Of the seven-point-15 billion-dollar fund, GM will shoulder a total of six-point-four billion dollars by converting GM Korea’s two-point-eight-billion-dollar debts into equity and spending three-point-six billion dollars on equipment investment at the Korean unit. 

As GM Korea's second largest shareholder, the Korea Development Bank will pay the remaining 75 million dollars this year to help the carmaker invest in facilities.