The government and creditors plan to collect about US$1.2 billion from GM Daewoo over the next 22 months after GM headquarters in Detroit hinted it will move production lines for some GM Daewoo models including the Lacetti Premier overseas.

A senior government official on Thursday said, "It seems more likely that GM will withdraw from Korea after relocating GM Daewoo's production lines overseas, just like Shanghai Automotive Industry," which bought Ssangyong Motor but withdrew when it went into court receivership. "To prepare for this, creditors including Korea Development Bank are going to collect loans given to GM."

Currently, the creditors are under a $5 billion futures exchange contract with GM Daewoo, with about $300 million maturing each month. Unless the creditors extend the maturity, GM will have to repay them making up for exchange losses caused by the weakening of the won.

"Based on the current exchange rate, GM will have to repay about W1.4 trillion," one creditor said.

But the government and creditors believe it will not be so easy for GM to relocate production lines overseas once it brings all that money into the country. A government official said, "If the creditors continue to supply funds, GM will likely withdraw from Korea at an earlier date because it faces less of a financial burden."