GM Korea, which barely agreed to normalize the management in May, has been again in rough water. As GM Korea held a general meeting on Oct. 19 to push for the separation of R&D corporation, despite the backlash from its two largest shareholders, the KDB Bank and the labor union, the possibility of restructuring and withdrawal is rising again.
As the labor union declared a general strike and the KDB Bank declared legal response, and Incheon City is considering taking back the driving test site that it rented GM Korea for free, the second round of the GM Korea case is expected to be a prolonged war among GM, the central government, the provincial government, political circles and the labor community.
Incheon Mayor Park Nam-choon said in his Facebook page on Oct. 21 that he ordered a relevant department to review the law on the recovery of the test site provided to GM Korea. The test site was constructed in Cheongna-dong, west of Incheon, and the city lent it to GM Daewoo in 2004.
The KDB Bank and the labor union also declared an all-out war. The union plans to go on strike as early as Oct. 22 according to the National Labor Relations Commission's decision on the suspension of the arbitration.
The KDB Bank, which failed to enter the general shareholders' meeting, said, "There are defects in the process, so that we will proceed with all possible legal steps."
If the rumor of its withdrawal is reignited and the conflict between labor and the management has been prolonged, the normalization of the GM Korea will be far away. GM Korea, which has recorded hundreds of billions of won in losses every year since 2014, is expected to make a loss of 1 trillion won this year.
