SEOUL, May 10 (Reuters) - General Motors can’t sell any of its 77 percent stake in its troubled South Korean unit over the next five years and has to keep its holding at over 35 percent between 2023 and 2028, South Korea said on Thursday, unveiling details of a new deal with the U.S. automaker.
The restriction on the stake sale in GM Korea was one of tools that will prevent GM from leaving the South Korean market, the nation’s Finance Minister, Kim Dong-yeon, told a press conference.
The Detroit car maker and state-run Korea Development Bank (KDB) have agreed on $7.15 billion of investments, including a $2.8 billion debt-for-equity swap for existing loans GM Korea owed to its parent, to rescue the unit. GM and KDB will sign a binding deal on May 11, the minister said. (Reporting by Hyunjoo Jin, Writing by Ju-min Park; Editing by Muralikumar Anantharaman)