In an effort to help mitigate the effects of GM Korea's downsizing, the Financial Services Commission asked state-run policy banks to provide financial support to local subcontractors of the American auto giant.
Meeting with the heads of banks Thursday, the Seoul's top financial regulator Choi Jong-ku said they should work to prevent the subcontractors from becoming more financially destabilized.
He added financial authorities will set up a task force to inspect and support subcontractors affected by GM Korea's decision to downsize its operations back in February.
Choi urged both the automaker and its labor union to reach an agreement on a turnaround plan as quickly as possible... as government's efforts would mean nothing unless there is a deal.
Meanwhile, in order to speed up the negotiations, GM Korea has applied for its sites in two different regions to be classed as foreign investment zones.
If accepted, they'll be granted corporate tax benefits for up to seven years.