The South Korean government said Thursday it plans to decide on its aid package for General Motors Co.'s Korean unit after looking into its financial situation and long-term investment plan to turn around its businesses here.
The United States automaker revealed last week it would close down a factory in Gunsan, southwest of Seoul, which it was mulling the fate of its three remaining plants in South Korea.
GM has asked for financial support for its South Korean unit.
GM's head of worldwide operations, Barry Engle, flew to Seoul this week and had a series of meetings with senior officials from KDB, the finance ministry and trade ministry, as well as lawmakers and union leaders.
Kim said the automaker should play "a responsible role" in normalizing its South Korean operations and should come up with a sustainable development plan.
Pressures are rising on the government and the KDB to reach an agreement with GM before the expiration date to prevent it from opting for a complete exit from the country, especially ahead of the local elections in June.
It did not give details.
"The Korean government and GM agreed to conduct due diligence on its Korean unit to figure out its financial situation", said the joint statement by the Finance Ministry and Ministry of Trade, Industry and Energy.
GM said the three principles are "reasonable", and pledged to hand in its turnaround plan as soon as possible, the statement said.
The audit is part of efforts to figure out the exact amount of GM Korea's debt to its headquarters and subsidiaries and whether its proposed business plan is viable.
When asked the Gunsan plant will be closed as planned, Kim declined to comment.
GM's South Korean labor union on Thursday has decided not to go on a strike for the time being, a union source told Reuters.
The union will also ask the government to allow GM's union to participate in the due diligence of GM Korea, the source added.