[THE INVESTOR] General Motors is considering selling its service center in Seoul amid growing speculations over the carmaker’s exit from the market following its announcement of closing a Korean plant by May, according to The Bell on Feb. 20.

The GM headquarters had attempted to sell the facility two years ago but the plans were scrapped due to resistance from the local labor union. 

General Motors' assembly plant in Gunsan, North Jeolla Province

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The three-story building, located on a 9,928 square-meter site, is valued at about 150 billion won (US$139 million).

The report said the facility sale comes as part of the money-strapped Korean unit’s cost-cutting efforts. GM Korea’s accumulative losses have reached almost 3 trillion won over the past five years. 

Meanwhile, the ruling Democratic Party urged the US motor company on Feb. 19 to fulfill its social responsibility as a global corporation, as thousands are expected to lose jobs due to GM's decision to shut down one of its plants in Korea. 

"The Democratic Party cannot accept this decision," Rep. Woo Won-shik, floor leader of the ruling party, said during a meeting with representatives of about 300 parts suppliers and other partner firms to be affected by the planned shutdown.

"We will have the government look closely into the issue and come up with a reasonable alternative," the lawmaker said during the meeting at the National Assembly. "We sternly ask (GM) to fulfill its social responsibility as a global corporation."

The ruling party is expected to meet GM Executive Vice President Barry Engle to discuss the issue Feb. 20.

Engle has said that the performance of GM's operations in Korea needs to be urgently addressed by GM Korea and its key stakeholders.

"As we are at a critical juncture of needing to make product allocation decisions, the ongoing discussions must demonstrate significant progress by the end of February, when GM will make important decisions on next steps," Engle said last week in a statement.

By Park Ga-young (gypark@heraldcorp.com)