GM offers 10-year $2.8bn investment plan for its South Korean business
Seoul — General Motors (GM) has offered a $2.8bn new investment plan for its South Korean business after threatening to exit the country amid mounting losses, a lawmaker from the country’s ruling party said. The investment, being proposed for the next 10 years in South Korea, is needed to produce new models, for research and development, to renovate facilities and for business restructuring, said Hong Young-pyo, a lawmaker from Bupyeong, where GM Korea’s biggest plant is based. The US vehicle maker is also considering a $2.7bn debt-for-equity swap at its Korean unit, Hong said in a phone interview on Wednesday. "We have a product plan for GM Korea which will be decided in March by our headquarters that will come with a significant amount of spending," a spokesperson at the car maker’s local unit said. "We expect our operations and production to continue smoothly over the next 10 years through the plan," he said, declining to specify the amount of support GM is seeking from South Kor...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.