Submits a Stake Sale Plan to Government
The GM Korea (GM) labor union will meet with lawmakers to discuss Korea Development Bank (KDB)’s reported plan to sell off its stake in GM Korea.
The union's leaders will hold a meeting with members of the National Assembly's Trade, Industry, Energy, SMES and Startups Committee around the middle of December to respond to KDB’s unexpected move.
According to media reports, KDB has submitted a plan to sell off its entire 17.02 percent stake in GM Korea to the Ministry of Economy and Finance. The bank presented the plan in compliance with the ministry's guideline for reform of public institutions and corporations.
The ministry is pressuring public institutions to sell off non-core assets and equity investments in external companies to improve their financial health.
The meeting between GM Korea unionists and lawmakers is expected to zero in on when KDB will sell off the stake. A memorandum of understanding (MOU) signed between the Korean government and GM Korea following the shutdown in 2018 of the automaker's plant in Gunsan includes a clause that KDB will not sell off its holdings until 2028.
The bank's stake sale plan submitted to the government did not specify the timing of the sale.