SEOUL, March 22 (Reuters) - South Korea’s vice finance minister said on Thursday there is tension between GM Korea and the Korea Development Bank because the U.S. automaker isn’t sharing internal information about the company necessary for the bank to carry out due diligence.
“My understanding is that there is tension (in the due diligence,” Vice Finance Minister Ko Hyoung-kwon told reporters after a meeting in Seoul.
“In order to carry out due diligence, which is a difficult process, we need company information but I think (GM Korea) finds it difficult to share information about global strategies (with the KDB),” Ko said.
The KDB, a major shareholder of GM Korea with a 17 percent stake, began due diligence on the automaker last week to decide whether to extend financial support to the loss-making operations of General Motors. This came after the company announced a restructuring of the unit and a closure of one of its plants. (Reporting by Cynthia Kim Editing by Paul Tait)