GM to invest $600 million in South Korea plants amid modernization push

On the Dash:

• GM will invest $600 million in South Korea, including an additional $300 million announced this week.
• Funds will modernize two plants and enhance small-SUV production capacity.
• GM Korea sales fell 7.5% to 462,310 vehicles in 2025, raising concerns among workers.

General Motors said Wednesday it will invest $600 million in its South Korean operations to upgrade manufacturing facilities and improve product competitiveness.

The automaker is adding $300 million to a previously announced $300 million investment plan from December. The funds will be used to modernize two plants in South Korea, including the adoption of the latest press machine models.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

The investment will also support upgrades to production capabilities, improvements in product quality, and efforts to strengthen technological competitiveness in small-sized SUVs produced in the country.

GM Korea remains a key production hub for the automaker’s small SUVs. The unit sold 462,310 vehicles in 2025, down 7.5% from the previous year, with most vehicles exported to the United States.

The announcement comes as workers continue to express concerns about GM’s long-term presence in South Korea. The automaker agreed to a $7.15 billion government rescue package in 2018, which requires GM to maintain its investment in the country for 10 years.

However, union officials noted that GM has not announced plans to produce new future models, including EVs, at its South Korean plants.