Main creditor to mull financial support for GM Daewoo

SEOUL, April 23 (Yonhap) -- The state-run Korea Development Bank (KDB) said
Thursday it will consider giving financial support to the South Korean unit of
the troubled General Motors Corp. on condition that the U.S. firm guarantees the
fate of the local unit.
"If GM's American headquarters include measures to guarantee long-term
development of the local unit and other support in their restructuring plan, KDB
may review granting liquidity aid to GM Daewoo," the state bank said during its
meeting with GM executives.
KDB, the main creditor of GM Daewoo Auto & Technology Co., also called on the
local unit to step up its own efforts to raise competitiveness in tandem with its
parent company.
GM Daewoo, the third-largest carmaker in South Korea, sought 1 trillion won
(US$742.7 billion) of financial assistance from KDB in February after its car
sales plunged amid a global economic slowdown.
The state bank and the government have rebuffed the plea, citing uncertainties
over the auto maker.
General Motors is currently under a U.S. government-imposed deadline to
restructure under the threat of potential bankruptcy.
pbr@yna.co.kr
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