THE INVESTOR

메뉴열기
December 17, 2018

Gov’t talks with GM to utilize closed Gunsan factory

PUBLISHED : June 05, 2018 - 15:22

UPDATED : June 05, 2018 - 15:22

  • 본문폰트 작게
  • 본문폰트 크게
  • 페이스북
  • 트위터
  • sms


[THE INVESTOR] The Korean government is in discussions with General Motors to use the closed Gunsan factory as a way to boost the local economy and employment, a senior industry official said on June 5.

The American carmaker shut down the Gunsan factory, located 274 kilometers south of Seoul, on May 31 as part of a global restructuring plan aimed at cutting costs.

The plant shutdown poured cold water on the city, with a population of 270,000, which was already reeling from the closure of Hyundai Heavy Industries’ shipyard last year.

“The government is well aware that Gunsan’s economy is undergoing a very hard time,” Moon Sung-wook, a senior official at the Ministry of Trade, Industry and Energy, said in a meeting with reporters. “Discussions are currently under way with GM and other related ministries to find a relevant way to utilize the plant at an earlier date.”

As part of efforts to revitalize the local economy, the government last month designated the port city as an emergency response zone so as to provide residents with job support and tax incentives.

“The Gunsan factory is GM’s asset and it doesn’t plan to use it for car manufacturing, but the production line is decent,” Moon said. “If there‘s anybody that can make good use of it, GM is ready to cooperate with the (Korean) government in any way” including through an asset sale.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)

  • 페이스북
  • 트위터
  • sms
최상단으로
Herald Corporation|CEO : Kwon Chung Won
Chief Privacy Officer & Juvenile Protection Manager : Shin Chang Hoon
Company Registration No. 104-81-06004
Mail-Order Business Registration 2016 - Seoul Yongsan - 00590
Huam-ro 4-gil 10, Yongsan-gu, Seoul, Korea
T : +82-2-727-0615|Business info
COPYRIGHT HERALD CORPORATION. ALL RIGHTS RESERVED.