GM signs growth plan for South Korea auto unit
US automaker General Motors Wednesday signed an agreement with Korea Development Bank (KDB) for the long-term development of its South Korean operation GM Daewoo Auto and Technology, KDB said.
State-run KDB said the agreement will require the US firm to guarantee redemption of GM Daewoo's preferred shares held by local creditors.
The Detroit-based auto giant will also share licences with its South Korean unit for vehicles they jointly develop, the bank said in a statement.
KDB has a 17 percent stake in GM Daewoo, South Korea's fourth-largest automaker, following GM's 70.1 percent stake.
Under the agreement, KDB will also have a greater say in GM Daewoo's management with the appointment of three outside directors to the Incheon-based automaker's board.
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