GM Korea to increase vehicle production amid US tariff-related exit concerns

This photo shows newly built vehicles being transported from GM Korea's plant in Incheon, April 1. Yonhap

GM Korea, the Korean unit of General Motors GM), plans to increase production at its Incheon plant by about 9 percent this year, the company's labor union said Wednesday, easing concerns over a potential withdrawal amid growing uncertainty over the United States' tariff policies.

According to the union, the company recently said it would allocate an additional 21,000 vehicles to the plant in Bupyeong, Incheon, west of Seoul, for production this year.

The increase amounts to nearly 9 percent of the plant's annual production capacity of 250,000 units.

The move comes as speculation has grown about a possible exit of GM from Korea in response to Washington's 25 percent tariff on imported vehicles.

GM Korea ships about 85 percent of its exports to America.

According to the union, the added production volume signals that GM intends to maintain the Korean base as a key export hub.

"The decision to boost production will likely ease some of the anxiety among our members," a union official said.

The union plans to hold a meeting with management to reflect the updated production plan in next month's work schedules.

A separate labor-management meeting is also scheduled for later this month to discuss countermeasures against U.S. tariff policies and strategies for stable operations.