The Korea Development Bank (KDB) is considering raising its stake in GM Daewoo, according to officials at the state owned bank.
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“We have expressed that we might consider raising our stake in GM Daewoo to GM,” a KDB official told Reuters.
State-run KDB is in talks with GM on possible financial support for GM Daewoo, the official added.
The Reuters report noted that KDB is the No.2 shareholder of GM Daewoo Auto & Technology with a 28% stake.
General Motors has said it will not support GM Daewoo if its Korean creditor does not join the automaker’s rescue.
GM’s chief finance officer Ray Young told reporters in Detroit this week that GM was unable to provide financial aid to struggling GM Daewoo and that help for the company should first come from its largest creditor – the Korea Development Bank.
Young’s comments directly oppose the KDB’s conditions for giving aid to GM Daewoo, the Korea Herald said. KDB on 23 April said these include GM providing support for its Korea subsidiary, plans for improving GM Daewoo’s competitiveness and guarantees for GM Daewoo’s future role within GM.
