KDB to Start Talks with Management of GM Korea

The Korea Development Bank (KDB)'s proposed trilateral talks with the labor and management of GM Korea have been aborted.

"GM Korea counterproposed bilateral talks with the KDB, and the labor union expressed its willingness to participate when a set of preconditions are met,” the KDB said in a press release on Nov. 13. “Therefore, the trilateral talks scheduled for today were canceled.”

“Let’s concentrate on normalizing GM Korea by holding trilateral talks on pending issues, including the separation of an R&D corporation from GM Korea, clarifying one another’s position with candor and meeting halfway,” said Lee Dong-gul, chairman of the KDB, proposing the three-party talks in a meeting with reporters on Nov. 8.

GM Korea proposed holding bilateral talks with the KDB, excluding the labor union. For its part, the labor union set as preconditions for talks the management’s apologies for the alienation of the labor union and promise to prevent such alienation from occurring again, the disclosure of the agreements among shareholders, due diligence inspection reports, the content of the cost sharing agreement (CSA), the initiation of a lawsuit against members of the board of directors at GM Korea, and shareholder audit rights.

The KDB plans to start bilateral talks with GM Korea first. "In order to normalize GM Korea's business, trust among stakeholders needs to be restored through dialogue," the KDB said. "We will start bilateral talks with the management of GM Korea and are calling for the labor union to join the talks without any conditions attached."