Separation of Korea from … South Korea without future

The court banned the separation of GM Korea companies. GM Korea is considering pushing for corporate separation by taking all measures, including appeals.

On September 28, the 40th Civil Court of the Supreme Court of Seoul's Supreme Court cited some of the injunctions filed by KDB Industrial Bank (Korea), Korea's second-largest shareholder, calling for the cancellation of the resolution on the approval of the dividend proposal for GM Korea. The plaintiff overturned the first decision that ruled on the defendant and partially pleaded on the plaintiff.

The court said: "The suspension of the approval of the dividend plan has been resolved at the extraordinary request of shareholders". GM Korea should not implement the resolutions, "he said.

As a result, the separation of GM Korea's legal entities is suspended. GM Korea plans to partition the business registration of GM Technical Center Korea, a research and development (R & D) company until December 3. GM also announced a list of six GM executives who will be part of GM Technical Center Korea's board of directors, including GM chief engineer Roberto Lempel last month.

Previously, GM Korea had decided to hold a special shareholders' meeting, without participation, and had decided to split the existing company into production and research and development companies. R & D companies need to be separated to improve the effectiveness of global collaboration and research and development on new cars. However, the company and the union oppose the possibility that GM Korea continues to hold R & D companies and clean production companies. After the shareholders' meeting, the company filed a request to suspend the resolution of the general meeting of shareholders.

A GM representative in Korea said, "We will review all legal responses, including appeals." The creation of the GM Technical Center in Korea is the best way to standardize GM Korea's management. "

GM Korea argued that it was necessary to separate R & D companies to standardize its activities. GM Korea's competitiveness rationale needs to be strengthened by supporting the development of new cars that are not produced in Korea, such as GM's next generation mid-size SUV.

GM's headquarters is on the verge of a mbadive restructuring announced yesterday (local time). GM has announced plans to restructure four plants in the United States, one in Canada and five more, and to reduce the number of employees by 14,000. It also announced the closure of two factories abroad. The company recorded a record operating profit of $ 12.8 billion last year, but it was restructured pre-emptively, saying it would prepare for global automotive overcapacity and cars of tomorrow. He made it clear that he would not stand on profitable business.

Lee Han-gu, senior researcher at Lee Hang-gu, said: "GM's five plants in North America have been closed in terms of profitability and utilization rates. GM, the negotiator, will not deliberate closing the plant next year but will use it as a trading lever. "GM has repeatedly announced its intention to operate primarily on the markets of the Americas and China. This is the reason why it is very likely that factories in Asia, with the exception of China, are closed. GM Korea said that there was no adjustment for additional production plans, but it is also expected to issue a line discount card for Changwon and Bupyeong factories in Korea l & # 39 next year. An auto industry official said: "We have decided to close the Kunsan factory before the local Korean elections.We can use a factory restructuring card when we enter the general election phase. of 2020 next year. "

In the US financial market, we welcome GM's preventative restructuring. GM shares climbed 4.79% just after the announcement of the restructuring. President Donald Trump said he was considering a plan to reduce the total amount of GM subsidies, including subsidies for electric cars, but the market is looking at GM's direction. "GM's decision is painful, but it will be even worse if there is no restructuring – the second Kodak, the decision not to be Sears," he said. Kodak, the film market leader, has collapsed on digital cameras. The Sears Department Store, a symbol of US distribution, was recently pushed to the Amazon and declared bankrupt. Other automakers, such as the Financial Times in Britain, have predicted that "the restructuring will continue in the future".

Kim Ki-chan, professor of business administration at the Catholic University of Korea, said: "Korea has no strategy for the transition to a future car. 39, a matter of work and management, I do not have the strategy and I can not solve the regulations and companies are not preparing. "