Shareholders of GM Korea have approved a controversial spin-off plan in the face of strong protests from its unionized workers.  

In a closed-door shareholders’ meeting at its Incheon headquarters, the company agreed to establish GM Korea Technical Center which will absorb the carmaker’s design center and engineering research unit.  

GM Korea President Kaher Kazem wrote in an e-mail the new company will “put a bigger focus on local manufacturing, export and domestic sales and continue to position itself as a globally competitive manufacturer of high quality vehicles, power trains and components."

The company's labor union sees the spin-off as a precursor to the U.S. automaker’s eventual departure from the local market and to massive restructuring and layoffs.  

Earlier this week, the union voted overwhelmingly to go on strike unless the National Labor Relations Commission intervenes in the matter.