While the due diligence will decide the fate of GM Korea, already 2,500 workers, amounting to nearly 15% of the plant’s staff, have opted for a redundancy package, as part of a strategic restructuring.
On Monday, an official from South Korea’s state-funded Korea Development Bank (KDB), which has a 17% stake in GM Korea, stated they have started their diligence on General Motors’ local unit.
KDB will now decide whether it will sink in additional funds to rescue the loss making unit.
GM Korea stated it would cooperate with the due diligence process, said KDB in a statement.
In February 2018, General Motors stated it would close down one of its factories in South Korea and decide on the fate of 3 others, unless it receives financial support from the government and wage concessions from unions.
So far nearly 15% of the staff, 2,500 workers, at GM Korea have opted for a redundancy package from the U.S. automaker as part of a restructuring process.
KDB stated Samil PricewaterhouseCoopers is conducting the due diligence.