The move is a blow to the administration of President Moon Jae-in, who has made jobs and wages a priority since taking office in May 2017.
A GM statement said yesterday that it has proposed to its labor union and other stakeholders a plan involving further investments in South Korea that would help save jobs.
"As we are at a critical juncture of needing to make product allocation decisions, the ongoing discussions must demonstrate significant progress by the end of February, when GM will make important decisions on next steps," Barry Engle, GM executive vice president and president of GM International, said in the statement.
The factory in Gunsan, a port city about 200 kilometers southwest of Seoul, has been making the Cruze, a sedan, and the Orlando model SUV.
It employs about 2,000 workers, and only used about 20 percent of its full production capacity in 2017, rolling out 33,982 vehicles.
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