General Motors (GM) decided to close its assembly plant in Gunsan, Korea, resulting in 2,000 GM Korea workers at the plant to be laid off.
On 13 February, the head offices of GM and GM Korea announced that production at its Gunsan plant will cease and the plant shut down by May 2018, as a self-rescue measure for GM Korea, presently suffering financial difficulty. The layoffs will be finished by May as well. GM Korea has been asking for emergency funding from the Korean government, but made a verbal notification of the layoffs to the government a day before the official announcement.
With the shutdown, more than 10,000 workers will lose their jobs, once workers at partner firms are included. Recession fears are increasing as many partner firms will likely close, hurting the local economy.
Mr. Kaher Kazem, GM Korea President, explained that “this shutdown is the first step in adjusting business in Korea. GM fully acknowledges the effort and support of the Korean government, the local communities of Gunsan and Jeonbuk, and workers in GM Korea in attempting to overcome the crisis. The company will do its best to support our workers during the adjustment.”