South Korea’s finance minister stated on Monday that public funds could only be utilize to favor the South Korean auto unit of General Motors if it was obvious that the business could survive on its own long-term.
Discussing with reporters following a policy meeting in Seoul, Kim Dong-yeon stated major shareholders and other parties involved should come to an agreement soon on sharing the burden of enhancing the loss-making operation.
GM surprised South Korea in February with strategies to close one local plant and leaving the fate of three other plants unclear. It is looking for government funding and incentives along with wage concessions to save the unit, which just posted an yearly net loss of $1.1 billion, its fourth consecutive year in the red.
