The US automobile giant said earlier it wishes to continue business in South Korean when closing down the Gunsan factory in February, revealing the debt-for-equity swap and investment plans.

Industry watchers, however, said GM is presumed to have shifted its stance recently to seek court receivership amid prolonged negotiations with the labor union and the KDB's investigation of GM Korea.

Accordingly, sources said GM may eventually shut down all production facilities in South Korea and relocate that production to China, leaving only research, design, and sales divisions here.

The potential exit of GM from the South Korean market is expected to adversely affect the country's automobile industry, as nearly half of GM Korea's 301 tier-one suppliers here depend on the company for more than 50 percent of their earnings. Up to 500,000 jobs are could be affected by the exit of GM Korea from the country, when considering other smaller subcontractors. (Yonhap)