The state-owned Korea Development Bank is the second-largest shareholder in GM Korea, after General Motors, holding 17.2 percent of its shares. The restructuring proposal comes just a week after GM announced it would shut down one of its plants in the western port city of Gunsan by May and consider whether to continue operations at its three other plants in Korea.
GM Korea's labor union, on the same day, said it is willing to cooperate if the government and the company agree on a concrete road map that would guarantee jobs.
On Tuesday, the National Assembly's task force on GM Korea met with Barry Engle, president of GM International, Hankook Ilbo reported. He declined to comment further on the discussions between GM and the South Korean government.
He also said it was possible for two new models to be allocated to the Bupyeong and Changwon factories but did not specify whether the assignment would depend on the South Korean government's support.
South Korean government officials said it was too early to decide on any financial backing, as it wanted to conduct due diligence before committing fresh investment in GM Korea.
Though WTO rules permit countries to levy tariffs based on facts that are available at the time if a targeted firm fails to cooperate in trade remedy investigations, Korea said the USA did not assess the facts "properly and objectively". -South Korean relations given U.S. President Donald Trump's determination to renegotiate the U.S. -Korea Free Trade Agreement.
Moon ordered a close review and a comprehensive policy package to tackle the recent moves that affect the export of South Korea, while rapidly pushing for innovative growth to improve the country's export competitiveness.
Starting production of two new models at Korean plants to raise the local unit's output to more than 500,000 units per year is included in GM's plan for Korea.