February 21, 2018 / 2:26 AM / 7 months ago

South Korea has asked for audit into GM Korea's 'opaque' management: trade minister

SEOUL (Reuters) - South Korea’s trade minister said on Wednesday the government has asked for an audit into General Motors (GM.N) “opaque” management in the country in the wake of the carmaker’s decision to shut down a factory in a city southwest of Seoul.

The main gate to GM Korea's Gunsan factory is seen in Gunsan, South Korea February 13, 2018. Picture taken February 13, 2018. Yonhap via REUTERS

“By opaque we mean the high rate of profits to raw material costs, interest payments regarding loans and unfair financial support made to GM’s headquarters,” said Minister Paik Un-gyu told lawmakers in parliament.

Paik added taxpayers’ money would not be wasted in government efforts linked to the GM issue. Detroit-based GM has said the factory in Gunsan will be closed by May and it is mulling the fate of its three remaining plants in South Korea.

Reporting by Christine Kim and Ju-min Park; Editing by Lincoln Feast

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