SEOUL, South Korea — South Korea says it has reached an agreement with General Motors to inject $4.35 billion in funding to keep the loss-making Korean unit afloat.
The government said Thursday the American automaker also agreed to limit its right to sell shares or assets for 10 years and to establish a new regional headquarters in South Korea.
Under the agreement, the state-controlled Korea Development Bank, GM Korea’s second-largest shareholder, will inject $750 million while GM will provide $3.6 billion in fresh loans.
GM’s restructuring plans, including a shutdown of one of its four plants in South Korea and reducing its workforce by nearly 3,000, stoked worries that GM Korea, third-largest carmaker in the country, may permanently close.
South Korea said the latest measures should ensure GM’s long-term stay in South Korea.
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