KDB starts reviewing assistance for GM's Korean unit

SEOUL, Feb. 28 (Yonhap) -- State-run Korea Development Bank said Saturday it is examining whether it should provide financial assistance to the South Korean unit of beleaguered U.S. automaker General Motors Corp.

GM Daewoo Auto & Technology Co., the third-largest carmaker in South Korea, has
sought one trillion won (US$652 million) in emergency funding from the bank to
help it stay afloat.
According to local news reports, GM Daewoo has already reached its credit limit
of 1.37 trillion won from the state-run bank and the carmaker has $750 million in
loans coming due in October.
"We are reviewing documents handed over by GM Daewoo," said a KDB official. "But
it will largely depend on how the U.S. government treats General Motors."
On Friday, the automaker said it will extend a production stoppage at its two
plants in March amid a steep decline in sales and a liquidity shortage.
GM Daewoo's vehicle sales last year declined eight percent to 881,959 units. In
January this year, sales plunged 50.5 percent on year to 45,842 vehicles.
General Motors, hit by a sharp sales drop and liquidity shortage, recently has
sought $16.6 billion in financial assistance from the U.S. government in addition
to $13.4 billion fund received late last year.
sam@yna.co.kr
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