[GM KOREA]
SEOUL -- U.S. carmaker General Motors will launch an independent corporation specializing in research and development on January 2. Out of its 13,000-member workforce, the company will relocate about 3,000 workers to the new entity called "GM Korea Technical Center."
GM came up with the sudden idea of setting up the new center on July 10 by integrating research and design centers, sparking concerns among workers that the American company is trying to scale down its operation in South Korea.
Initially, Korea Development Bank (KDI), which is the second-biggest shareholder with a 17 percent stake, opposed the new entity, but the state-run bank agreed to lend support after GM promised to maintain its business in South Korea.
In May, GM shut down a plant in the southeastern port city of Gunsan as part of its global restructuring through months of tough negotiations with union leaders and bank officials. The closure came three weeks after GM agreed to extend a bailout of $7.15 billion to its business in South Korea.
reporter
Lim Chang-won
cwlim34@ajunews.com
