GM Korea will face a make-or-break situation at the end of this month as it has to pay back 620 billion won it borrowed from its U.S. headquarters by Feb. 28. The Korean government is saying it cannot help but doubt GM headquarters has a will to normalize the operation of GM Korea if it does not agree to extend the loan period.
Barry Engle, GM executive vice president and president of GM International, will make his third visit to Korea this week to meet with South Korean government officials to request support and press its labor union. He has made it clear that there should be “meaningful progress” in its negotiations with the Korean government and the labor union by the end of February.
According to financial and auto industry sources, GM Korea has to pay back at least 1.6077 trillion won to its U.S. headquarters by the end of this year. Among the amount, 580 million dollars (619.7 billion won) should be repaid by end of February and 988 billion won by end of April. The 1.6077 trillion won is only a collection of money it borrowed by the year 2016. If the money it borrowed last year, which has an expiration date of about one year is combined, the amount it has to repay by the end of this year is likely to increase remarkably.
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