The South Korean government has expressed deep regret over the decision by General Motors(GM) to shut down its plant in Gunsan, North Jeolla Province and pledged to conduct an objective and transparent inspection to normalize management.
First Vice Finance Minister Ko Hyoung-kwon convened a meeting of related agencies on Tuesday and said the government regrets GM's unilateral decision to cease production and close down the Gunsan plant by the end of May.
Ko said the government has closely monitored and shared information on the progress of GM Korea. He said that in order to accurately determine the business situation, the Korea Development Bank, which owns a 17 percent stake in GM Korea, will consult with GM to conduct objective and transparent due diligence.
The government plans to continuously consult with GM on ways to normalize GM Korea's business operations, considering the impact on jobs and the local economy.
The government issued the stance after GM said in a press release earlier in the day that it will shut down its vehicle assembly plant in Gunsan by May as part of efforts to restructure operations in South Korea.
The decision is expected to affect some two-thousand workers who produced about seven percent of the 520-thousand vehicles manufactured by GM Korea last year.