All hands are on deck-- with Korea's political and economic forces working in tandem to cope with GM's pullout decision.
However,... Seoul's trade minister has reaffirmed that the government *cannot give financial support to GM Korea,... unless it conducts its business more transparently AND commits to fresh investment in the nation.
Kim Ji-yeon with more.
In a briefing held Monday, the Minister of Trade, Industry and Energy, Paik Un-gyu said GM Korea should submit a long-term proposal to improve transparency of its business management in the country, emphasizing that the company should show its commitment to normalize its business prior to asking the government for support.
The minister added that any funds provided to the carmaker would originate only within WTO regulation, and with the purpose of preventing the shut down of GM Korea's Gunsan plant, one of four assembly plants the company has in the country.
Paik also denied accusations that the government had made promises to provide monetary support when it required the automaker to submit a proposal.
He also said he understands that, as a profit seeking business entity,... the automaker could ultimately decide to pull out of the country,...resulting in an undesirable impact on the local job market.
Considering such risk, Paik said the government is willing to work with the automaker to improve the situation.
One of the ways GM Korea could stay in business is for the automaker to announce Korea as the production allocation of its new crossover vehicle model instead of other locations such as Mexico.
But Paik says the option may not become a deal-breaker just yet... since the company seems to experience difficulties in making a final decision that is dependent on the outcome of NAFTA renegotiation talks.
If the automaker decides to start making the model in its plants in Bupyeong and Changwon... it's expected to able to produce about 500-thousand units annually... that could help them avoid the same fate of the Gunsan plant which is to shut down in May... leading to massive loss of workforce of around 2-thousand people.
Kim Ji-yeon, Arirang News.