GM’s investment proposal of $ 2.8 billion to 10 years in South Korea: Government Official.

GM has proposed an investment of $2.8 billion into its loss-making South Korean operations over the next 10 years and has asked Seoul to provide its share of the funds.

General Motors has proposed an investment of $ 2.8 billion in its loss-making South Korean operations over the next 10 years and has asked Seoul to provide its share of the funds, to South Korean government official said on Wednesday.

The U.S. automaker announced last week it would shut down to factory in Gunsan, southwest of Seoul, and that it was mulling the fate of its three remaining plants in South Korea.

GM owns 77 percent of its South Korean unit GM Korea, while state-run Korea Development Bank (KDB) owns at 17 percent stake. GM’s main Chinese partner, SAIC Motor Corp., controls the remaining 6.0 percent.

The official, who had direct knowledge of the matter, said GM had asked South Korea to inject funds into GM Korea through KDB. On the basis of its shareholding, KDB would provide around $ 476 million in investment.

Read more: https://www.cnbc.com/2018/02/21/gm-proposes-a-2-point-8-billion-10-year-investment-in-south-korea-government-official.html