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GM Korea to fire half its foreign executives

Staff Writer |
GM Korea will fire half its foreign executives and employees, about 18, by September, its spokesman told The Korea Times.

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Responding to the union's long-term demand, Kaher Kazem, CEO of the ailing carmaker, emailed the executives to tell them of the downsizing plans.

Each foreign executive costs more than 500 million won ($460,000) a year in wages and welfare expenses. It would save about 10 billion won a year.

A GM spokesman said the executive committee, led by the CEO, has 15 other executives, about half of them foreigners. GM Korea has 15 vice presidents, with eight from abroad. The carmaker plans to cut vice presidents by 35 percent.

GM is negotiating with the Korean government and its second-largest stakeholder, the Korea Development Bank, for financial support to restructure its loss-making Korean operations. It has closed its Gunsan factory, the smallest of its four plants in Korea.

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