eFM News

[Anchor]

The government is taking a series of measures to limit the negative impact of General Motors' decision to shutter one of its four plants in South Korea.

But the finance ministry made it clear that it will review GM's rehabilitation plans before accepting the U.S. automaker's request for financial assistance.

Jeong-eun Lee has more.

[Reporter]

The labor ministry has decided to take emergency measures to designate Gunsan as an employment crisis area following GM's announcement last week that it will close a plant in the city by May.

Cheong Wa Dae said under the measures, workers in the region who are feared to lose jobs would be entitled to receive government support.

The presidential office also said it plans to designate Gunsan as a special industrial crisis district to provide financial support to troubled businesses.

The move comes as GM seeks financial support from the Seoul government to revive its operation in the country.

Meeting with lawmakers in Seoul earlier today, GM's international operations chief Barry Engle said that the company would like to stay in Korea to fix problems.

A lawmaker who attended the meeting quoted him as saying the carmaker may produce two new models in Korea as part of an effort to continue its Korean business.

Finance Minister Kim Dong-yeon said the government will come up with a stance after reviewing GM's viability plans.

The labor union of GM's Korean unit, meanwhile, laid out six requests, including a three trillion won debt for equity swap and a definitive roadmap for producing new models in the country.

Jeong-eun Lee, eFM News.■