Korea GM – the South Korean arm of U.S. auto giant General Motors – is selling off key assets, even as its parent company ramps up manufacturing investment in the United States.
The contrasting moves are once again raising questions about GM’s long-term commitment to the Korean market.
According to company-wide notices sent on May 28, Korea GM will begin selling all nine of its company-run service centers across the country, as well as underutilized assets and land at its Bupyeong plant.
GM Korea framed the decision as part of an operational efficiency drive. “Maximizing the value of idle assets and streamlining loss-making service operations is essential to sustaining our business,” said Hector Villarreal, President of GM’s Asia-Pacific and Korean divisions.
But the timing is notable. Just as Korea GM is retreating domestically, General Motors announced an $880 million investment into its Tonawanda engine plant in Buffalo, New York, aimed at boosting production of V-8 engines for trucks and SUVs.
New York Governor Kathy Hochul said the deal would preserve jobs and add nearly 900 new positions, crediting GM’s renewed focus on American manufacturing.
The move reflects GM’s broader pivot amid declining EV demand and shifting political winds in the U.S., where the Trump administration has signaled a rollback of EV incentives and support for traditional powertrains.
GM had previously planned a $300 million investment in EV component production at Tonawanda, which has now been shelved in favor of the larger combustion engine push.
The stark contrast between GM’s expansion in the U.S. and asset sales in Korea has reignited rumors that GM could be considering another market exit.
The automaker has pulled out of several countries in recent years, including Australia, Indonesia, Thailand, India, and most notably, the closure of Korea GM’s Gunsan plant in 2019.
Although GM maintains that the Korean asset sales are simply part of ongoing restructuring, the decision reportedly came without prior consultation with labor unions-just ahead of annual wage talks. That lack of communication has further fueled anxiety over the company’s future in the country.
An auto industry source put it bluntly: “Korea GM produces mostly for export to the U.S. If Washington’s tariff policies make Korean manufacturing less competitive, it’s hard to rule out a full exit. It wouldn’t be the first time.”
