General Motors announced that it plans to invest US$ 300 million to upgrade the manufacturing operations of its South Korean subsidiary, GM Korea Company, reaffirming the US automaker’s commitment to producing vehicles in the East Asian country. The announcement was made at the ‘GM Korea 2026 Business Strategy Conference’ in the city of Incheon earlier this week.
The imposition of a 25% tariff on South Korean imports by the US earlier this year had cast doubt on the future role of GM Korea as a production hub for the Chevrolet brand. The company produced almost 500,000 vehicles in 2024, including the Chevrolet Trax and Trailblazer SUVs, with over 80% of output understood to have been shipped to the US.
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The recent decision by the US government to reduce tariffs on South Korean imports to 15%, bringing them in line with other major exporters such as Japan and the European Union, will have had a significant influence on GM’s decision to continue to invest in South Korea.
GM Korea’s domestic sales plunged by 39% to 13,952 units in the first eleven months of 2025, amid rising competition from Hyundai-Kia and import brands, while exports fell by 6.5% to 395,858 units.
GM Korea confirmed that the US$ 300 million investment will be used to produce the next-generation Chevrolet Trax and Trailblazer, without providing a timeline for the investment. The company said that its existing five-year investment roadmap in GM Technical Center Korea, including the recent opening of the Cheongna Proving Ground Virtual Engineering Lab, has further strengthened GM Korea’s role as a global engineering hub.
The company pointed out that GM Technical Center Korea is the “second-largest research and development facility within GM’s global operations, after its US headquarters. It is equipped with facilities capable of complete vehicle development, from design and engineering to final vehicle verification and production technology, and plays a key role in the advancement of global electrification and future mobility technologies.”
To help strengthen its domestic sales, GM Korea said it will introduce its GMC and Buick brands in South Korea in 2026, to be sold alongside the Chevrolet and Cadillac brands. The company also plans to expand and strengthen its sales and service networks in South Korea, while “offering a broader vehicle portfolio featuring cutting-edge technologies like Super Cruise.”
GM Korea’s CEO, Hector Villarreal, stated in his presentation at the event: “Recording a profit in 2024 was a significant milestone for GM Korea. By faithfully executing the normalization plan established in 2018, we are building a sustainable foundation. Over the past 20 years, GM has produced 13.3 million vehicles in Korea and sold 2.5 million domestically, establishing GM Korea as a key pillar of the South Korean automotive industry. Going forward, we will further strengthen our full-cycle capabilities in Korea, from vehicle design and engineering to production and sales. We will also expand our portfolio of next-generation internal combustion engine vehicles and electric vehicles, introduce cutting-edge driving technologies for Korean customers, and grow alongside the South Korean market as a strong partner in the South Korean automotive ecosystem and local economy.”
