The head of the state-run Korea Development Bank on Thursday ruled out a bailout for ailing GM Korea without substantial investment from GM headquarters.
The government has been conducting due diligence on GM Korea to determine if the U.S. automaker is justified in shutting down its assembly plant in Gunsan amid demands for massive financial infusions.
Lee Dong-geol told reporters at KDB headquarters that GM Korea's losses are "the responsibility of GM headquarters."
GM is asking KDB to take part in a plan to recapitalize the automaker equivalent to its 17.02 percent stake in GM Korea. The KDB chief said he agreed with Barry Engle, GM's head of overseas operations, that KDB will consider support after taking a look at the results of the government's due diligence study and a self-rescue plan proposed by GM headquarters to save the Korean unit.
Meanwhile, Engle returned to Seoul on Wednesday for further meetings with KDB executives to discuss the duration and scope of the due diligence and with union representatives to discuss wage cuts.