According to reports, General Motors has proposed investing almost US$3bn into its loss-making South Korean operations over the next ten years and has asked Seoul to also provide funds.
Reuters cited an unnamed South Korean government official.
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The proposal is on top of a more than US$2.2bn debt-for-equity swap GM is offering to get financial support and tax benefits from Seoul.
The government official told Reuters GM had asked South Korea to inject funds into GM Korea through the state-run Korea Development Bank (KDB), which holds a 17 percent stake in the unit. On that basis, KDB would provide around US$476m in investment, the report said.
GM Korea has said it will end production and close its Gunsan plant by the end of May 2018. Gunsan includes an engine unit with capacity for 200,000 and a 260,000-unit car assembly plant curently making Chevrolet Cruze/Cruze Classic/Cavalier models. Capacity utilisation at the plant fell to 20% when orders from Europe dried up due to GM's exit from that market.
However, GM has three other manufacturing plants in South Korea and is considering their future.
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