Hector Vizareal, President of Korea GM: "Absolutely Not Withdrawing from Korea"... Union Protests "Declaration of War"

[Financial News] Korea GM's announcement to sell its directly managed service centers and idle land at the Bupyeong plant is showing signs of intensifying labor-management conflict. While Korea GM, facing 'withdrawal rumors' due to the U.S.'s high tariff policy, insists that the sale of some assets is inevitable to secure sustainability through increased profitability, the labor union is strongly opposing, calling it a "declaration of war and provocation" against its 7,000 members.
On the 29th, according to industry sources, Korea GM's labor and management held wage and collective bargaining negotiations this morning. Previously, Korea GM abruptly announced the sale of assets and low-utilization facilities and land at its nine nationwide directly managed service centers and the Bupyeong plant the previous day. In the first meeting between labor and management since the announcement, the union raised its criticism of the company.
Hector Vizareal, President of Korea GM, apologized for not attending the initially scheduled first negotiation on the 28th, stating, "I assure you that the company's announcement is absolutely not a withdrawal. Yesterday's announcement was made for the future of Korea GM, and no employee will lose their job because of it."
He continued, "The sale of facilities under discussion does not affect current or future production plans or the utilization of production facilities," emphasizing the importance of consultation with the union.
In response, the Korea GM union strongly opposed. Ahn Kyubaek, head of the Korea GM union, reportedly stated, "We will clearly show in the negotiations what results the company's unilateral announcement will bring. We will clearly prove that the company's judgment is wrong."
He further pointed out, "We confirmed through various routes that the Industrial Bank of Korea, the second-largest shareholder, knew about the asset sale plan the day before yesterday. The company's unilateral notifications without priority are seriously disregarding the union."
The industry expects that Korea GM's asset sale plan will further intensify labor-management conflict.
Korea GM currently operates nine directly managed service centers in Seoul, Wonju, Jeonju, Busan, Daejeon, Changwon, Incheon, and Gwangju, and plans to sell these centers and completely transfer them to partner service centers. It also plans to negotiate the sale of idle assets and low-utilization facilities and land at the Bupyeong plant. The automotive industry sees Korea GM's move as an effort to improve profitability amid increasing difficulties due to the U.S.'s high tariff policy on imported cars.
According to the Korea Automobile Mobility Industry Association (KAMA), Korea GM exported a total of 148,728 vehicles from January to April this year. Of these, 126,088 vehicles were exported to the U.S., accounting for 84.9%. Due to its U.S.-centric export structure, the company has been plagued by rumors of withdrawal from the domestic market following the U.S.'s tariff policy.

cjk@fnnews.com Choi Jong-geun, Jeong Won-il Reporter