KOREA, REP: Today, September 21, at 10:30 a.m. in Korea, General Motors signed a memorandum of understanding (MOU) to acquire the insolvent automaker Daewoo Motor Co. The deal is understood to include a 67 per cent stake in Daewoo, and the price paid by GM is 600 billion Korean won (US$463 million).
Among businesses excluded in the MOU are the Pupyong auto plant in Inchon and the Daewoo plant producing buses in Pusan. For the time being, the Pupyong plant will have to assume its debt and it will continue to operate, with the government taking over.
More details will follow, as well as the reaction to the deal by the Korean Metal Workers' Federation, which organises the workers at Daewoo Motor. For additional information on the trade union struggle at Daewoo, please search the IMF website.