[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]
SEOUL, Feb. 22 (Aju News) -- A majority of taxpayers opposed an unconditional bailout to keep afloat General Motors' troubled operations in South Korea, a poll showed Thursday as the American carmaker embarked on talks with government officials over the proposed shutdown of one plant.
In a survey of 500 people, Realmeter, a Seoul-based pollster, found that 55.5 percent supported conditional financial help only if GM submits a reasonable plan to normalize the operation of its subsidiary in South Korea, while 29.8 percent opposed the injection of taxpayers' money to rescue a foreign company. Only 6.4 percent supported unconditional support.
The survey coincided with the start of negotiations between GM Executive Vice President Barry Engle and Ko Hyong-kwon, the first vice minister of the Strategy and Finance Ministry. Engle is expected to hold a series of meetings with South Korean policymakers.
South Korean government officials have insisted on looking into GM Korea's financial situation before deciding on any possible bailout. On Wednesday, Trade, Industry and Energy Minister Paik Un-gyu accused the Detroit-based company of being opague in management and bookkeeping.
"Ahead of any new investment, it is our first priority to make sure everything is objective and transparent," Paik told a parliamentary committee. "GM is suspected of having intentionally prevented access to specific business strategies and data" at the meeting of shareholders including the state-run Korea Development Bank, which holds a 17-percent stake.
GM has offered to convert 2.7 billion US dollars in debt owed by its South Korean operation into equity in exchange for financial support as well as tax and other benefits. It also proposed a new $2.8 billion investment plan for the next 10 years.
KDB has led the sweeping restructuring of debt-stricken shipbuilders and ailing firms, but it is reluctant to endorse a debt-equity swap, insisting GM should take its responsibility for poor management.
Engle said earleir that GM would decide soon whether to maintain a production capacity of 500,000 units at its plants in South Korea by allocating two new vehicles. In South Korea, GM runs four car assembly plants and one transmission factory since it acquired Daewoo Motor in 2002.
GM's decision on February 13 to close one plant in Gunsan by the end of May triggered widespread concerns in the regional community. The Gunsan plant has some 2,000 workers and 12,000 others employed at suppliers and subcontractors. GM has described the shutdown as inevitable for the restructuring of its global business.
GM Korea, the third-largest carmaker in South Korea, has been hit by falling sales as well as rising costs and debt. GM officials have complained about excessive demands and labor activities by unionized workers.
reporter
Lim Chang-won
cwlim34@ajunews.com
