If and when GM Korea withdraws from South Korea, more than four out of ten auto industry workers will be affected in Korea.
The Ministry of Trade, Industry and Energy (MOTIE) said on February 15 that the total number of employees of GM Korea and its partner companies was estimated at 156,000 as of 2016. GM Korea employed about 16,000 workers and part suppliers, about 140,000.
A total of 301 first-tier partners hired about 93,000 workers and among the first-tier partners, 86 which hired approximately 11,000 workers were exclusive partners of GM Korea. The MOTIE estimated that about 30,000 people were employed by 1,000 second-tier partners and about 17,000 by 1,700 third-tier partners.
According to the National Statistics Office's 2016 survey of the mining and manufacturing industries, the automobile industry including automobile manufacturers and parts suppliers had about 350,000 on the payroll.
Analysis says that about 44.6 percent (156,000 of 350,000 workers) of Korean automobile workers can be directly or indirectly affected if and when GM Korea withdraws or drastically reduces its business size.
Some of GM Korea’s partners supplied their products to other automakers but if orders from GM Korea shrink, they are highly likely to suffer from a drop in sales.
Of the 350,000 workers, seven automakers in Korea hired about 130,000 people. Hyundai Motors had 67,517 people on the payroll; Kia Motors, 30,4102; GM Korea, 15,906; Renault Samsung, 4,226; Ssangyong, 4833; Daewoo Bus, 611 and Tata Daewoo, 1,331. GM Korea employed the third largest number of people.