GM factory in Korea (Image courtesy of Yonhap)
SEOUL, Dec. 15 (Korea Bizwire) — GM Korea said Monday it will invest $300 million to bolster its South Korean operations, a move aimed at easing concerns that the Detroit automaker could scale back production in the country amid shifting U.S. trade policies.
The announcement was made at the company’s 2026 Business Strategy Conference in Incheon. Hector Villarreal, GM Korea’s chief executive, called the Korean unit “a key production hub” for meeting global demand, particularly for vehicles built exclusively in Korea.
“GM’s commitment to Korea remains unchanged,” Villarreal said, adding that the latest investment is intended to support a “sustainable future” for the company’s local operations.
GM Korea said the funds will go toward upgrading models to meet rising global demand for SUVs such as the Chevrolet Trax and Trailblazer, though it did not outline a timeline for the spending.
The pledge comes as GM faces speculation in South Korea that the company may eventually scale back its manufacturing footprint. Earlier this year, Korean-built vehicles bound for the U.S. were hit with a 25% tariff before Washington and Seoul reached an agreement lowering the rate to 15% beginning in November. GM Korea exports roughly 410,000 vehicles a year, about 85% of them to the U.S.
Seeking to broaden its market position, GM said it plans to introduce the GMC and Buick brands in Korea in 2026, expanding beyond Chevrolet and Cadillac under a multi-brand strategy.
The company also said it has upgraded its Cheongna Proving Ground in Incheon and opened a new Virtual Center to reinforce South Korea’s role as an engineering and development base within GM’s global network.
Kevin Lee (kevinlee@koreabizwire.com)
