GM denies speculation of another pullout from Korea

GM Korea president James Kim denied the speculation of a possible pullout from Korea again, saying the rumor is groundless, Yonhap news agency reported Wednesday. His comment was made during a meeting with the local press during the 2016 Detroit Auto Show on Tuesday.

Kim said GM considers Korea is one of the important markets and so it will roll out new cars to boost sales this year, the report added. 

The repeated rumor that the U.S. automaker could leave the country was recently reignited as its Korean branch conducted an early retirement program late last year. A review on stock selling by Korea Development Bank also added concerns over the GM pullout. KDB holds a 17. percent stake in GM Korea. 

Market watchers said GM might have an interest in the stock buying, which could lead to the stock re-sell in the future. KDB has yet to release the details of its stake selling plan.

The outlook for car sales of GM Korea is not rosy this year considering worsening business conditions for the auto industry. GM Korea’s annual sales last year shrank 1.4 percent to 621,872 units.

By Seo Jee-yeon (jyseo@koreaherald.co.kr)