Barry Engle, president of GM International, called on the Korean government for a swift due diligence inspection and the designation of GM Korea factories as foreign investment zones, citing a liquidity crisis in April.According to the Ministry of Trade, Industry and Energy on March 27, Engle who ha
The Korea Development Bank (KDB) will sell its stake in KDB Life Insurance Co. as well as increase capital in 2020 after stabilizing the company. However, it is uncertain that KDB Life Insurance can turn from an ugly duckling into an attractive investment by improving its financial soundness and reo
Hyundai Merchant Marine Co. (HMM) announced on March 25 that it has signed a financial contract with Korea Shipping and Maritime Transportation Co. to build five 300,000-ton very large crude carriers (VLCCs).The company signed a US$420 million (470 billion won) contract with Daewoo Shipbuilding & Ma
The chief of Qingdao Doublestar Co. visited South Korea and showed his determination to become a global leading tiremaker through co-prosperity with Kumho Tire.During a press conference at the KDB headquarters in Yeouido, Seoul, on March 22, Doublestar Chairman Chai Yongsen said, “Doublestar wants t
Creditor banks of Hyundai Heavy Industries Co. and Samsung Heavy Industries Co. have decided to extend the limit of (RG) for new ships to build this year by up to 50 percent compared to last year. This came after the number of orders won by Hyundai Heavy Industries and Samsung Heavy Industries has i
There is growing suspicion that GM Korea let the company fall into a state of capital impairment. The impairment of capital is the core of restructuring efforts that the GM headquarters in the U.S. currently raise its share ratio by converting 3 trillion won (US$2.79 billion) of debts lent to GM Kor
SK Engineering & Construction Co. (SK E&C) and Daelim Industrial Co. have closed a financial contract for a project to construct the world’s longest Canakkale suspension bridge in Turkey and will start construction in earnest.The two companies said on March 18 that they concluded a financial agreeme
General Motors’ South Korean union has said on March 15 it will not demand a pay rise for this year and a bonus pay for last year. As the union has accepted part of the company’s demands but made other requests including prohibition of layoffs for 10 years, all eyes are on how labor and management n
Financial Services Commission (FSC) Chairman Choi Jong-ku held a press conference in Seoul on March 14 and said that GM is willing to stay in the South Korean automobile market. According to him, the automaker recently said that it would cooperate actively for due diligence on GM Korea.“GM Korea’s c
According to financial industry and investment banking (IB) industry sources on March 11, KB Financial Group has joined a takeover battle for ING Life Insurance Korea and is to have a second leg with Shinhan Financial Group that recently started due diligence on the firm for a possible acquisition.
Korea Trade Insurance Corporation (K-sure) announced on March 8 that it will provide 400 million euro (US$496.36 million or 532 billion won) to a project to construct a Canakkale suspension bridge in Turkey participated in by Daelim Industrial Co. and SK Engineering & Construction Co. (SK E&C).Accor
"I made a conditional oral promise that we will confirm the cost structure of GM Korea and if GM Korea can survive with a self-help plan, we will consider injecting new funds into the company” said Lee Dong-geol, chairman of the Korea Development Bank regarding three meetings with Barry Engle, execu
With respect to the normalization of Kumho Tire, a conflict between its creditors and labor union is going to extremes. The creditors set the end of March as the deadline for the labor union’s acceptance at the end of this month, but the labor union refused to negotiate and raised voices for a gener
The Kumho Tire creditors including the Korea Development Bank (KDB) announced on March 2 that they would conduct a third-party capital increase of 646.3 billion won (US$581 million), 5,000 won (US$4.5) per share, with Doublestar Tire. If it turns out to be successful, Doublestar Tire becomes the lar
Kumho Tire showed its trial to avoid being putting into court receivership. Its creditors gave in, saying that they will get the labor union's consent again when they sell off the tire company to a foreign company, and the labor union temporarily agreed with the creditors’ and the company’s manageme
A possibility of putting Kumho Tire into court receivership has expanded."We will make other viable measures as a labor-management agreement is unlikely to be made," said the Korea Development Bank (KDB), the main creditor bank of Kumho Tire. The Kumho Tire Labor Union stood up to the KDB, saying “C
It has been found that an increasing number of employees are applying for voluntary retirement.GM announced on February 13 that it would shut down GM Korea’s plant located in Gunsan by May this year. At the same time, employees were allowed to apply for voluntary retirement by March 2. GM said that
The Korea Development Bank (KDB), the main creditor of Kumho Tire, is seeking to attract outside capital but whether the Ministry of Trade, Industry and Energy (MOTIE) and the Defense Acquisition Program Administration (DAPA) allow a foreign company to become the largest shareholder will be a variab
Negotiations have started between the South Korean government and GM over the future of GM Korea. GM is calling for a debt-equity swap, a paid-in capital increase, and so on while threatening to shut down GM Korea’s plants. The government, in response, is adhering to three principles, including GM’s
The Korea Development Bank (KDB) said on February 21 that GM International President Barry Engle decided to accept KDB Chairman Lee Dong-geol’s preconditions and principles for financial support for GM Korea. Although the bank did not explain what the preconditions are, these are likely to include d