Differences remain as due diligence on GM Korea begins

Latest news

    SEOUL, March 12 (UPI) — Unresolved differences remain as General Motors Korea and its second largest shareholder Korea Development Bank as due diligence on the company begins this week.

    According to South Korea’s trade ministry, KDB launched the long-due review on Monday morning with a meeting at GM’s Bupyeong plant, west of Seoul, News 1 reported.

    The U.S. automaker last month announced its decision to scrap its Gunsan plant and decide on the fate of its remaining factories in the country, claiming that local operations have been unproductive.

    The ailing company has requested government subsidies through KDB and tax benefits in return for a debt-to-equity swap on loans from GM headquarters and the allocation of new cars to South Korean plants.

    With thousands of jobs at stake, local authorities have requested due diligence to examine why the company fell into the red before deciding on state support to keep operations up and running.

    GM Korea is believed to have provided its locally manufactured cars to GM outlets worldwide at excessively low prices as well as paying higher-than-average interest on loans from its parent company.

    KDB aims to look into the suspicions as well as costs for management, technology and labor.

    However, the format and the period of due diligence still haven’t been determined. The review was delayed for about three weeks, as GM did not submit documents requested by the bank.

    According to Yonhap, KDB Chairman Lee Dong-gull told reporters, “There were differences between the KDB and GM over the conditions involving due diligence, but they reached an overall agreement on various aspects.”

    Bank officials say the U.S. company is still showing reluctance on disclosing vital information, with GM International’s President Barry Engles complaining last week that the due diligence is too strict, Maeil Business Daily reported.

    It appears GM wishes to wrap up the review within a month, while KDB is pushing for a thorough audit of the company’s management, citing its lack of transparency over the years.

    View the original article: https://www.upi.com/Top_News/World-News/2018/03/12/Differences-remain-as-due-diligence-on-GM-Korea-begins/4091520836682/

    Meanwhile, GM Korea on Monday requested the governments of South Gyeongsang Province and Incheon City to designate its factory sites as foreign investment zones, making it eligible for seven years of tax benefits.

    https://www.upi.com/Top_News/World-News/2018/03/12/Differences-remain-as-due-diligence-on-GM-Korea-begins/4091520836682/ to see original story and photos

    In the same category are

    U.S. soldier gets 11 years for detonating chemical weapon on Army base Sept. 25 (UPI) -- A U.S. soldier has been sentenced to 11 years for manufacturing and detonating a chemical weapon in a forest adjacent to an Army bas...
    Former Facebook employee sues company, claims job gave her PTSD Sept. 25 (UPI) -- A former content moderator at Facebook has filed a lawsuit against the company, claiming she developed post-traumatic stress disorde...
    Former Facebook employee sues company, claims job gave her PTSD Sept. 25 (UPI) -- A former content moderator at Facebook has filed a lawsuit against the company, claiming she developed post-traumatic stress disorde...
    Feinstein calls for postponement on Kavanaugh vote after new sex allegation Sept. 24 (UPI) -- Sen. Dianne Feinstein, D-Calif., on Sunday night called for an "immediate postponement" on the confirmation vote for Supreme Court J...
    Superintendent resigns after racist comment of Texans’ Watson Lynn Redden, the superintendent of Onalaska Independent School District in Texas resigned Saturday morning following his racist comment about Texans q...
    Chiefs QB Patrick Mahomes looks to stay sharp against 49ers Kansas City quarterback Patrick Mahomes has been the talk of the league after the first two games, and he will try to keep it going on Sunday against ...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.