GM Korea closes Gunsan plant for final time after 22 years in operation
- 6 years ago
GM Korea is shutting down its plant in the western port city of Gunsan today-- after 22-years of operation.
It's the result of a decision reached by the South Korean government and the U.S.-based automaker as part of efforts to restructure the company's operations in the country.
On the local-level, though,... it's a massive blow to the regional economy.
Oh Soo-young reports.
General Motors has closed one of its four plants in South Korea,... leaving an economic vacuum in Gunsan.
The automaker's decision came in February as part of its corporate restructuring efforts,... bringing the factory's 22-year history of car manufacturing to an end.
Of the factory's 18-hundred workers, most have taken voluntary retirement, 400 unpaid leave -- while 200 are awaiting placements at GM Korea's three remaining plants.
However, the fallout of the shutdown is expected to be far-reaching.
Churning out some 270-thousand vehicles a year,... the factory accounted for half of Gunsan's exports, and a third of total exports for the greater Jeollabuk-do Province.
The livelihoods of some twelve-thousand local workers, employed by 130 affiliates and subcontractors that supplied auto parts to the factory, are on the line.
Other local businesses, including restaurants and real estate agencies, are also expected to suffer due to the outflow of workers.
To mitigate the impact on the local economy, some 20 million U.S. dollars from the government's supplementary budget this year has been earmarked to support Gunsan's local workers and businesses.
The government plans to roll out employment support and take measures to attract new businesses to the city.
Even so, most observers doubt the region will ever be able to fill the gap left behind by the departure of the U.S. auto giant.
Oh Soo-young, Arirang News.
It's the result of a decision reached by the South Korean government and the U.S.-based automaker as part of efforts to restructure the company's operations in the country.
On the local-level, though,... it's a massive blow to the regional economy.
Oh Soo-young reports.
General Motors has closed one of its four plants in South Korea,... leaving an economic vacuum in Gunsan.
The automaker's decision came in February as part of its corporate restructuring efforts,... bringing the factory's 22-year history of car manufacturing to an end.
Of the factory's 18-hundred workers, most have taken voluntary retirement, 400 unpaid leave -- while 200 are awaiting placements at GM Korea's three remaining plants.
However, the fallout of the shutdown is expected to be far-reaching.
Churning out some 270-thousand vehicles a year,... the factory accounted for half of Gunsan's exports, and a third of total exports for the greater Jeollabuk-do Province.
The livelihoods of some twelve-thousand local workers, employed by 130 affiliates and subcontractors that supplied auto parts to the factory, are on the line.
Other local businesses, including restaurants and real estate agencies, are also expected to suffer due to the outflow of workers.
To mitigate the impact on the local economy, some 20 million U.S. dollars from the government's supplementary budget this year has been earmarked to support Gunsan's local workers and businesses.
The government plans to roll out employment support and take measures to attract new businesses to the city.
Even so, most observers doubt the region will ever be able to fill the gap left behind by the departure of the U.S. auto giant.
Oh Soo-young, Arirang News.