Daewoo Motor Sales Corp., the South Korean sales agent for GM Daewoo Auto & Technology Co., reported a 76% drop in first-quarter profit because of lower fees on vehicles sold for GM Daewoo and higher costs, Bloomberg News reported.

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The company’s net income dropped to 5.95 billion won ($US5 million) in the three months ended March 31 from 25.1 billion won a year earlier. Operating profit fell 95% to 1.3 billion won and sales were 1.5% lower at 831.5 billion won, the report said.

Daewoo Motor Sales agreed last year to accept lower fees from GM Daewoo. The amount dropped to 15% for every vehicle sold starting in November from 18% before, resulting in sales agents receiving about 100 billion won less in revenue.

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