The official with direct knowledge of the matter added that the US vehicle maker had requested South Korea to inject funds into GM Korea, in which the country's state bank also holds a stake.
On the other hand, the official, who requested to remain anonymous, said that a closer look into GM's proposal should be done to see if the investment was enough to keep the unit afloat.
South Korea and Russian Federation have agreed to beef up cooperation in the energy sector on a wide range of areas, including natural gas, electricity and renewable energy development, the Seoul government said Wednesday.
Sources with direct knowledge of the matter say GM has offered to convert around two.two billion US dollars owed by its loss-making South Korean operations into equity, in exchange for financial support and tax benefits from Seoul.
The trade minister also stated that taxpayers' money would not be wasted in government efforts associated to the GM issue.
GM is looking to shut down its underutilized Gunsan plant in South Korea. The union leader said in an interview that he believed in the possibility of GM leaving the country.
A week ago, GM announced plans to close its underutilized Gunsan plant, one of four assembly lines in Korea, and it strongly hinted that it was considering pulling out of the country entirely if it couldn't reverse deep, ongoing losses.
Enforcement Directorate attaches Vikram Kothari's accounts
In 2017, Bank of Baroda (BoB), a consortium partner declared pen manufacturer Rotomac Global Pvt Ltd as "wilful defaulter". Earlier this morning, CBI spokesperson Abhishek Dayal said that there were no arrests in connection with the case as yet.
"We are ready to discuss the normalization of GM Korea", Finance Minister Kim Dong-yeon said in a meeting with reporters.
GM's decision was the latest in a series of steps it has made to put profitability and innovation ahead of sales and volume.
He said that there are several preconditions for providing financial support for the automaker, adding GM should present its commitment to improving management in the long-term. Outreach efforts will be made to make clear that South Korea's imports of Chinese steel do not target the United States market.
South Korea's presidential office also said Tuesday that it would designate Gunsan an employment "crisis zone", opening the way for government subsidies like cheap loans and other financial support for those laid off.
General Motors Co plans to produce two new models in South Korea, a local lawmaker quoted GM executive Barry Engle as saying at a meeting with South Korean members of parliament.
"They have requested for help and a thorough audit of the situation is among many preconditions before any public funds can be set aside", a government official told Reuters, requesting anonymity due to the sensitivity of the matter, referring to GM.