The Korea Development Bank (KDB) is likely to withdraw its opposition to GM Korea's plan to spin off its R&D unit into a separate company.
The bank said on Dec. 12 that it has received a plan from GM Korea about how the company would be managed after the planned separation of the R&D unit. The bank said it has asked a consulting company to analyze the plan.
"We have opposed the separation of the R&D unit on precedural grounds because GM Korea did not give us a concrete plan on how the company would be managed after spinning off the R&D function," said Lee Dong-gul, chairman of the KDB earlier. Accordingly, the KDB is more likely to turn in favor of the spin-off plan as it has received a management plan from GM Korea.
The KDB filed an injunction with the court to suspend GM Korea's spin-off plan and the court accepted its request.
"We have continued to have talks with GM Korea since October apart from the legal action against it," a KDB official said. “We will negotiate under the principle of protecting our rights as a shareholder of GM Korea and map out a plan to guarantee GM Korea's sustainability.”