Many people were assigned here when the Gunsan plant was closed. (If they withdraw from Bupyeong) real estate listings will come out, and the impact on restaurants will be much greater.
This alley is all GM Korea suppliers, and those large vehicles are all cars going into the GM plant. You could say that half of Bupyeong is GM Korea.
On Nov. 3, when U.S. President Donald Trump imposed tariffs of several percent on goods worldwide, GM Korea's Bupyeong plant, located in Cheongcheon-dong, Incheon, was surrounded by many employees and vehicles, roughly the size of 1 million square meters (about 30 acres), which is similar to 136 soccer fields combined. Employees of GM Korea met here expressed anxiety over the news of the U.S. tariffs. Nearby residents also appeared worried that GM Korea might not withstand the tariffs and close the plant.
The 25% tariff imposed by the U.S. on all imported cars went into effect at 1:01 p.m. on Nov. 3. GM Korea exports more than 80% of its domestic production to the U.S., and when tariffs are added, its price competitiveness in the U.S. decreases. From GM’s perspective, the reason to produce cars in Korea weakens.
The plant seemed to operate regardless of the news about tariffs. From the two large chimneys inside the main gate, white smoke and steam continuously spewed out, and cars that appeared to be newly assembled were loaded onto large trucks and made their way out of the factory.
Choi (55), who is working as a security officer at the entrance of the factory, said, "870 vehicles went out of the factory today alone. Most are for export, so they go directly to Incheon Port." Another employee entering the factory noted, "Production has stopped on red days (holidays) starting this year. Until last year, before the tariffs were mentioned, the factory operated 365 days, but now production has been cut. There’s no doubt that it feels uncertain."
An employee exiting the factory's rear door said, "The interior is divided into two sections: production and development. The production side has become sensitive since the end of last year, while the development side still seems fine."
An employee from a supplier, dressed in work clothes and wearing a hard hat, stated that if GM Korea withdraws, he would have to look for another job. He said, "I also work elsewhere, but GM Korea is the main one, so if it withdraws, that job disappears. There are about 5 to 6 similar electrical construction companies, but there are many other construction and equipment firms, so the impact will be great."
As lunchtime approached, people flocked to the restaurant area near the factory's front gate. Kim (36), who runs a meat restaurant nearby, noted, "Not only lunch but also the evening gatherings that bring in tens of thousands of won all at once are very helpful," and added, "If GM Korea leaves, the damage would be significant." He continued, "There are rumors that another corporation will move in if GM Korea leaves, but it could turn into a situation like Gunsan, and even if a shopping mall comes in, we will be affected."
GM acquired Daewoo Motors in 2002 and changed its name to GM Korea in 2011. Since then, it closed the Gunsan plant in 2018 and promised to maintain GM Korea until 2027 in exchange for 810 billion won in support from the South Korean government. At that time, it was analyzed that about 25% of the citizens of Gunsan were impacted by the plant's closure.
Kim (55), who runs a Korean restaurant near the GM Korea Bupyeong plant, said, "Most of the lunch customers are factory employees," adding that "the rumors of GM Korea withdrawing aren’t seen as a good thing, and people are keeping quiet about it." Another part-time worker at a different Korean restaurant, Kim (35), mentioned, "Most of the customers up until just now were from GM."
Um Kyung-sun (52), who runs a real estate agency in Cheongcheon-dong, stated, "When the Gunsan plant was closed, many people were assigned here, leading to an increase in transactions," and emphasized, "It may only involve about 20% of incoming customers, but if GM Korea leaves, it will definitely have a big impact on the local economy."
Municipal governments and corporations doing transactions with GM Korea started to assess the current situation in case of withdrawal. Incheon City stated, "There are as many as 47 first-tier vendors of GM Korea within Incheon. While nothing is confirmed yet, we may have to provide support for them, so we are in the stage of assessing the situation." Including second and third-tier suppliers in other regions, it is estimated that GM Korea has about 3,000 suppliers. A nearby financial institution dealing with GM Korea said, "The amount deposited by GM Korea with us exceeds 500 billion won, and it would be even more if we include other places."
Citizens appear to hope that the withdrawal won't become a reality. Jung (37), who works at a public enterprise nearby, said, "GM Korea has a large site and many suppliers. Saying it constitutes 50% of Bupyeong isn’t an exaggeration, and it needs to do well without leaving." Taxi driver Lee (70) mentioned, "When you combine employees and suppliers with their families, it amounts to tens of thousands of people," adding, "If GM Korea withdraws, it will not only impact Bupyeong and Incheon, but the national economy as well."
Professor Lee Ho-geun from Daeduck University’s future automotive department stated, "GM has been continuously talking about withdrawal for the past eight years to induce government support. This time, the possibility of withdrawal under the pretext of tariffs is quite high." He continued, "The automotive industry has significant links both fore and aft, and GM's export volume is around 350,000 units. For employees, accepting wage cuts that can correlate with tariffs might be the rational and only option instead of losing their jobs."