US automaker General Motors Company announced that it plans to invest US$ 600 million in its South Korean subsidiary, GM Korea, to upgrade its production equipment and introduce new models at its plants in the country.

This is double the US$ 300 million investment announced last December, following speculation last year that the automaker may be looking to exit vehicle manufacturing in the country after the US introduced import tariffs. GM Korea and its labor union together held an event at the company’s Bupyeong plant to celebrate the new investment pledge.

This latest announcement is seen as a sign of growing confidence in GM Korea’s improving performance and competitiveness. The additional investment will secure the future of GM Korea as a strategic manufacturing hub for small and compact SUVs.

Last year, GM Korea’s sales fell by 7.5% to 462,310 units, with domestic sales including imports plunging by over 39% to 15,094 units, while exports declined by 6% to at 447,216 units. The company produces the Chevrolet Trax crossover vehicle and the Trailblazer SUV, most of which are exported to the US.

GM Korea’s CEO, Hector Villarreal, said the new investment decision reflects “the success of its Korean-made products in global markets. Since 2018, with the support of our stakeholders, we have taken key actions to strengthen our manufacturing operations to support profitability.”