eseoulpost
InternationalIssue&Issue
KDB to focus on cost structure during GM Korea due diligence
min  |  min
폰트키우기 폰트줄이기 프린트하기 메일보내기 신고하기
승인 2018.03.11  
트위터 페이스북 미투데이 요즘 네이버 구글 msn
   
 

The state-run Korea Development Bank said Sunday it will thoroughly look into the cost structure of GM Korea Co. this week as it mulls whether to provide fresh loans to the loss-making South Korean unit of General Motors Co.

In a meeting with GM Executive Vice President Barry Engle in Seoul on Friday, KDB Chairman and Chief Executive Lee Dong-gull agreed that the state bank will begin due diligence on GM Korea in a "fair and transparent" manner this week though the Detroit carmaker has yet to submit "very sensitive" data to the Korean lender, a KDB official said over the phone.

But the KDB's claim contradicts a statement by GM, which said most of the necessary documents have already been sent to South Korea to help kick off the due diligence process.

"All the requested materials have been compiled," Engle said in a letter sent to GM Korea President and CEO Kaher Kazem on March 5, three days before his meeting with the KDB chairman.

These photos show KDB Chairman and CEO Lee Dong-gull (L) and GM Executive Vice President Barry Engle. (Yonhap)These photos show KDB Chairman and CEO Lee Dong-gull (L) and GM Executive Vice President Barry Engle. (Yonhap)

This clearly shows how differently the two parties understand the documents requested by the KDB to start the review. When exactly due diligence will begin has not been set.

"All written documents have been sent to the KDB. As for data involving transactions between GM and GM Korea, (GM and the KDB) can discuss such issues during talks," a person with direct knowledge of the matter told Yonhap News Agency by phone.

GM asked the KDB to complete due diligence within a month but the state lender demanded two to three months as it needs to thoroughly review GM Korea's financial status and its parent GM's investment plans in its Korean unit to decide on any fresh loans to it.

After announcing its plan on Feb. 13 to shut one of its four car assembly plants in South Korea by May and decide on the fate of the remaining plants within weeks, GM has been putting pressure on the KDB to participate in efforts to turn GM Korea around by injecting fresh capital.

While demanding support and sacrifice from all stakeholders in GM Korea, Engle said in the statement that GM plans to convert all of the outstanding $2.7 billion worth of debt GM Korea owes to its parent firm and allocate "two important new global product programs with strong export demand around which the company can build a strong business with better margins and more stable production."

   He also asked the KDB, as the second-largest shareholder in GM Korea, with a stake of 17 percent, to participate in its $2.8 billion investment plan in the ailing carmaker. But all the proposals are based on financial support from the Korean government, it said. GM owns a 77 percent stake in GM Korea and SAIC Motor Corp. controls six percent.

In response, the KDB made it clear that a new cash injection will be possible only when GM comes up with a "viable" plan to revive and maintain its Korean operations.

If GM fails to submit the sensitive data to the KDB, however, due diligence may not result in any fresh loan from the Korean government, KDB officials said.

PricewaterhouseCoopers will carry out a detailed review on behalf of KDB with an aim to finish the process by the end of April, according to the state bank.

Under the ongoing self-help program, 2,500 workers have applied for a voluntary retirement program offered by GM Korea. The company demanded its 16,000 workers accept a wage freeze and no bonuses for this year.

This week, the company and the union are expected to have talks over the proposed wage terms.

In 2017, GM Korea's sales fell 12 percent on-year to 524,547 vehicles, with its four plants producing 520,000 cars out of a total capacity of 910,000. (Yonhap News)

< 저작권자 © eseoulpost 무단전재 및 재배포금지 >
폰트키우기 폰트줄이기 프린트하기 메일보내기 신고하기
트위터 페이스북 미투데이 요즘 네이버 구글 msn 뒤로가기 위로가기
이 기사에 대한 댓글 이야기 (0)
자동등록방지용 코드를 입력하세요!   
확인
- 200자까지 쓰실 수 있습니다. (현재 0 byte / 최대 400byte)
- 욕설등 인신공격성 글은 삭제 합니다. [운영원칙]
이 기사에 대한 댓글 이야기 (0)
Most Read
1
Russian ambassador to Korea Timonin Alexander hosts reception for Russia Day
2
PHL celebrates Independance Day in gala reception in Seoul on June 12
3
(US-NK summit) Trump-Kim deal lacks specifics, but augurs well for denuclearization: experts
4
Sharjah Media Corporation donates AED3 million to build hospital for Rohingya refugees
5
S. Korea's Moon says U.S.-N. Korea summit will write new history of peace
6
Shincheonji Volunteers step up efforts to help less fortunate people
7
"Understanding one another is needed before beginning work of peacekeeping," says Myanmar Envoy
8
Two Koreas agree to completely restore military communication lines
9
Trump, Kim sign 'comprehensive' summit deal
10
Home check-in service in Dubai launched with UAE carrier flydubai and KSA carriers Saudia and flynas
Photo News Green Biz
Earth Hour 2018: Lights out across UAE as Earth Hour is marked
Earth Hour 2018: Lights out across...
min
Suqia plays key role in enhancing UAE's global efforts to address water challenges
Suqia plays key role in enhancing ...
min
UAE Innovation Month: Innovative Initiatives by Sharjah Development Forum to Serve UAE’s Technical Sector
UAE Innovation Month: Innovative I...
min
UAE environmentalists to travel to ends of the earth to inspire change
UAE environmentalists to travel to...
min
Mohammed bin Rashid launches Marmoom Desert Conservation Reserve
Mohammed bin Rashid launches Marmo...
min
Photo News Sports
UAE dominates the mat, winning 36 gold medals on day 2 of Abu Dhabi World Youth Jiu-Jitsu Championship
UAE dominates the mat, winning 36 ...
min
World Class Theme Park opens in Korea's central city of Chungju
World Class Theme Park opens in Ko...
min
Day Five of Abu Dhabi Jiu-Jitsu Festival kicks off with world’s leading professional athletes
Day Five of Abu Dhabi Jiu-Jitsu Fe...
min
S. Korea women's football coach eyes knockout berth at 2019 World Cup
S. Korea women's football coach ey...
min
UAE golf back in spotlight with Ras al-Khaimah Challenge Tour Grand Final
UAE golf back in spotlight with Ra...
min
S. Korean named new leader of East Asian football body
S. Korean named new leader of East...
min
Nahyan bin Mubarak receives female people of determination who participated in Special Olympics Regional Games in Abu Dhabi
Nahyan bin Mubarak receives female...
min
PyeongChang 2018 chief organizer says 4 things led to successful Winter Olympic, Paralympic Games
PyeongChang 2018 chief organizer s...
min
Photo News World
UAE dominates the mat, winning 36 gold medals on day 2 of Abu Dhabi World Youth Jiu-Jitsu Championship
UAE dominates the mat, winning 36 ...
min
World Class Theme Park opens in Korea's central city of Chungju
World Class Theme Park opens in Ko...
min
Day Five of Abu Dhabi Jiu-Jitsu Festival kicks off with world’s leading professional athletes
Day Five of Abu Dhabi Jiu-Jitsu Fe...
min
S. Korea women's football coach eyes knockout berth at 2019 World Cup
S. Korea women's football coach ey...
min
UAE golf back in spotlight with Ras al-Khaimah Challenge Tour Grand Final
UAE golf back in spotlight with Ra...
min
S. Korean named new leader of East Asian football body
S. Korean named new leader of East...
min
Nahyan bin Mubarak receives female people of determination who participated in Special Olympics Regional Games in Abu Dhabi
Nahyan bin Mubarak receives female...
min
PyeongChang 2018 chief organizer says 4 things led to successful Winter Olympic, Paralympic Games
PyeongChang 2018 chief organizer s...
min
Photo News Opinion
S. Korean team visits N. Korea to prepare launch of liaison office
S. Korean team visits N. Korea to ...
min
Moon to push for recovery of remains of war dead in DMZ
Moon to push for recovery of remai...
min
Philippine President Rodrigo Duterte visits E-Mart
Philippine President Rodrigo Duter...
min
S. Korea depart for Austria for pre-World Cup camp
S. Korea depart for Austria for pr...
min
Police seek arrest warrants for two pro baseball players accused of sexual assaults
Police seek arrest warrants for tw...
min
Koreas agree to hold military dialogue, family reunion talks this month
Koreas agree to hold military dial...
min
Police seek arrest warrant for Korean Air chairman's wife
Police seek arrest warrant for Kor...
min
Samsung Display's workplace report contains 'key national technologies': panel
Samsung Display's workplace report...
min
Newspaper AboutNews ReportAdvertiseComplaintsPrivacy PolicyJuvenile protectionRejection of E-mail Collection
Gangnam-gu, Teheran 52 street in Tehran Bldg, 616(Yeoksam-dong)  |  Main Phone: 02) 563-0604  |  Fax: 02) 538-5665
Chairman : jeong-woo Lee  |  Advisor : byung-il Min  |  Publisher: jae-mo Kah  |  Editors: il-hong Kim
Registration Number 1928 Seoul ah  |  eseoulpost.com / eseoulpost.net / Global Korea.,Ltd
Copyright © 2011 eseoulpost. All rights reserved. mail to jaemokah@daum.com , kih10kr@empas.com/ www.globalkorea.info
arabafrica.net / UAE Interract / Emirtes News Agency(WAM)/ http://wam.org.ae / www.uaeinteract.com