GM plans $300 million investment in Korea facilities

General Motors’ South Korean unit said it will invest $300 million, or about 440 billion won, in its production facilities in South Korea, easing speculation about a possible withdrawal that emerged after the company sold its company-owned service centers. The automaker said the investment reflects a strategy to move South Korea beyond the role of a simple manufacturing base and position it as a core global engineering hub.

GM Korea announced the plan on Dec. 15 at its “2026 Business Strategy Conference” held at the Cheongna proving ground in Incheon. Hector Villarreal, president and chief executive officer of GM Korea, said the company will strengthen capabilities across the entire value chain, from design and production to sales. He added that GM Korea will expand both its internal combustion engine and electric vehicle portfolios and introduce advanced driving technologies as it grows with the South Korean market.

The company also plans to significantly expand its domestic product lineup. Starting next year, GM will introduce the GMC and Buick brands, completing a four-brand lineup alongside Chevrolet and Cadillac. This will make South Korea the first market outside North America to offer all of GM’s global brands. GM Korea said it plans to invest about $300 million in its production facilities and launch more than four new vehicle models by 2026.

GM Korea also opened a Virtual Engineering Lab at the Cheongna proving ground, bringing together research organizations that had previously operated separately. The company said the new facility is designed to improve development efficiency by combining virtual simulations with real-vehicle testing. Brian McMurray, president of GM Technical Center Korea, said South Korea serves as a core hub for GM’s future technologies.

The move is widely seen as an effort to dispel speculation about a possible withdrawal, which intensified after labor unions protested the sale of company-owned service centers as a de facto step toward exiting the country. Villarreal said GM will continue to invest in its production base and emphasized that the company’s commitment to South Korea remains firm.


Jae-Hyeng Kim monami@donga.com