"Waste of Public Funds GGM, Should Be Sold to Private Companies"

Daewoo Park, Chairman of the Minsheng Party Gwangju Metropolitan City Committee, Holds Press Conference

On the morning of the 14th, Park Dae-woo, Chairman of the Gwangju Metropolitan City Party of the Minsheng Party, held a press conference at the Gwangju City Council, stating that Gwangju Global Motors should be sold to a private company.

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] There has been a call to transfer Gwangju Global Motors (GGM), born from the 'Gwangju-type job' project, to a private company. The argument is that administrative waste should be prevented and competitiveness should be secured according to market principles.

On the morning of the 14th, Park Dae-woo, chairman of the Minsheng Party Gwangju Metropolitan City Party, held a press conference at the Gwangju City Council and proposed, "The Gwangju-type job is a political product and should be sold to a strong private company as soon as possible."

Chairman Park questioned, "How can a factory that only has the assembly production function of vehicles developed by large corporations secure competitiveness and have a future vision?"

He also mentioned, "We cannot waste citizens' taxes on the futile logic of increasing competitiveness through low labor costs."

In particular, he pointed out, "The actual largest shareholder of GGM is Gwangju City, but if an administrative agency that prioritizes public interest operates an OEM-type automobile factory, it is impossible to expect the agility and bold investment unique to private companies, and the overall efficiency and management performance evaluation of the company will also be difficult."

He explained that variables such as electing a mayor every four years through elections and administrative waste caused by complaints could emerge as obstacles. It remains questionable whether management from a mid- to long-term perspective is truly possible in the rapidly changing automobile industry.

He said, "The Casper is an internal combustion engine vehicle, but considering the environmental standards of advanced countries including Europe and the rising trend of oil prices, switching to electric vehicles is essential. However, how will we cope with the closure of parts suppliers and job losses caused by funding for changing the vehicle type to electric vehicles?"

Finally, he emphasized again, "Discussions on sales reflecting market conditions and corporate value must begin," adding, "From the perspective of GGM's corporate value, now, when vehicle sales are high due to the new car effect, is the right time for sale."