The South Korean government expects to see financial support given to local General Motors unit to GM Daewoo, a minister said on Friday (17 April).
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“Main creditor Korea Development Bank is conducting a due-diligence study with regards to financial support for GM Daewoo,” Yonhap news cited knowledge economy minister Lee Youn-ho as saying during a parliamentary session.
“(I) expect appropriate support measures will be made in various ways, led by the financial sector.”
GM Daewoo had requested additional loans from banks including KDB, the country’s state-run bank, after exhausting a US$2bn credit line, a Reuters report said.
The minister’s comments followed the government’s announcement last weekend of a $400m car industry support package.
A bank spokesman said it would wait the United States government reached a decision on the fate of GM.
GM Daewoo repeated on Friday it was looking for a credit facility to be provided by the state-run lender, Reuters added.
