Industrial Bank of Korea "Concerns Over Potential Production Disruptions at Korea GM"

[Asia Economy Reporter Kangwook Cho] The Korea Development Bank (KDB) has expressed serious concerns about the possibility of production disruptions caused by recent partial strikes and other labor disputes related to Korea GM's management issues.

In a press release on the 5th, KDB stated, "Currently, Korea GM is going through a very critical period to establish a foundation for business normalization, including expanding export volumes centered on the United States, producing the Trailblazer, and developing additional new vehicles." It added, "KDB, as the second-largest shareholder, is seriously concerned about the repeated annual labor-management conflicts and the resulting production disruptions delaying Korea GM's business normalization efforts."

The day before, the Korea GM labor union decided to strike for four hours on the 6th, 9th, and 10th. In response, the management announced it would postpone investment plans for the Bupyeong plant, indicating an intensifying labor-management conflict.

KDB emphasized, "Amid the rapid paradigm shift in the automotive industry, we urge both labor and management to make mutual concessions, promptly reach an agreement on wage and collective bargaining, resolve management uncertainties, and work together to implement Korea GM's business normalization during the COVID-19 crisis."