"GM's Withdrawal from Korea No Longer Just a 'Rumor'... Government Intervention Needed," Say Political Circles and Labor Unions in Unison

Forum Held on December 4 for Sustainable Development of Korea GM
"Government and National Assembly Must Establish a Control Tower to Respond"

Political circles and labor unions have argued that the withdrawal of GM from the Korean market should be regarded as a given, and that proactive measures must be prepared. Korean GM (Korea GM) has already closed nine directly operated service centers nationwide and has announced the impending closure of a subcontractor at the Sejong parts logistics center.

Yonhap News Agency

On December 4, at the 'National Assembly Forum for Establishing Sustainable Development Plans for Korean GM Beyond Withdrawal Rumors' held at the National Assembly Members' Office Building in Yeouido, Seoul, Lee Yongwoo, a member of the Democratic Party of Korea, stated, "Korea GM claims that the sale of idle land and the closure of maintenance businesses are due to U.S. tariff hikes. However, even after an agreement was reached to lower auto tariffs recently, the company is sticking to its closure policy. Therefore, we can no longer dismiss the withdrawal rumors as mere speculation."

Assemblyman Lee emphasized, "While GM may have concerns about its factories or maintenance centers in Korea as part of its global production and sales strategy, these decisions must be made through sufficient communication and sharing with the labor union, the Korean government, and local communities. The government must proactively prepare for the possibility of Korea GM's withdrawal. In particular, the Korea Development Bank, as the second-largest shareholder, should actively exert its influence on decision-making."

The labor sector has also insisted that GM's withdrawal from Korea should be treated as a fait accompli and that active countermeasures must be prepared. Ahn Kyubaek, head of the Korea GM branch of the Korean Metal Workers' Union, expressed concern, saying, "Operations at the nine directly managed maintenance centers nationwide will end in February next year, and the only remaining Sejong parts logistics center is being fully outsourced. This is clear evidence that the withdrawal scenario for Korea is now in full swing."

Hong Seokbeom, a researcher at the Korean Metal Workers' Union Labor Institute, remarked, "We should stop calling it a 'withdrawal rumor.' Since 2018, GM has been steadily proceeding with its withdrawal process, and now it is time for the government and local governments to seek active measures."

He added, "The technological capabilities, skilled labor, and supply chain network accumulated over decades in the Korea GM value chain are separate from GM's capital. The government should establish an active industrial policy focused on preserving industrial assets."

On the 4th, participants are speaking at the 'National Assembly Forum for Establishing Sustainable Development Plans for Korean GM Beyond Withdrawal Rumors' held at the National Assembly Members' Office Building in Yeouido, Seoul. Photo by Jeon Youngju

In response, there was also a proposal that the government should form a ruling party-government task force (TF) to proactively prepare for GM's withdrawal from Korea. Oh Mingyu, a researcher at the Liberation Research Center of the Labor Issues Research Institute, said, "While it would be ideal for the Presidential Office to take the initiative, if that is not feasible, the government and the National Assembly should establish a control tower to assess scenarios in the event of GM's withdrawal and to seek sustainability measures."

Specifically, he suggested that Korea GM should be developed as a separate brand to continue production and exports. Oh stated, "Even if GM withdraws from Korea, it is necessary to establish a separate brand for Korea GM vehicles to ensure sustainability through continued production and exports. The government should demand that the separate Korea GM brand be granted the authority to launch vehicles in markets where GM does not currently operate."