March 12, 2018 / 6:01 AM / 6 days ago

South Korea kicks off due diligence on GM's South Korean unit: KDB

SEOUL (Reuters) - South Korea held an initial meeting on Monday for its due-diligence of General Motors’ local unit to decide whether to provide funds for the unit’s troubled operations.

FILE PHOTO: The main gate to GM Korea's Gunsan factory is seen in Gunsan, South Korea February 13, 2018. Yonhap via REUTERS/File Photo

State-funded Korea Development Bank, which holds a 17 percent stake in GM Korea, said the meeting took place on Monday.

GM Korea said it would cooperate with the due diligence process, KDB said in a statement.

GM said last month it would shut one of its factories in South Korea and decide on the fate of the three remaining plants in the coming weeks, unless it received government support and wage concessions from unions.

Almost 2,500 workers at GM Korea, about 15 percent of its staff, have applied for a redundancy package that the U.S. automaker is offering as part of a drastic restructuring.

Samil PricewaterhouseCoopers is conducting the due diligence, then reporting to KDB.

Reporting by Ju-min Park and Hyunjoo Jin; Writing by Joyce Lee; Editing by Muralikumar Anantharaman and Stephen Coates

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