General Motors (GM) Korea operations (GM Korea) said on the 15th it will invest $300 million (about 442.9 billion won) in production facilities in Korea. The move is seen as an attempt to dispel rumors of a withdrawal that flared this year amid U.S. government tariff imposition and the closure of company-run service centers.
GM Korea held the "GM Korea Operations 2026 Business Strategy Conference" at the GM Cheongna Proving Ground town hall in Cheongna International City, Seo-gu, Incheon, on the morning of the same day and announced next year's business strategy. First, GM Korea plans to run the Bupyeong and Gunsan plants at full capacity to meet demand for sport-utility vehicles (SUVs) such as the Chevrolet Trax crossover and the Trailblazer.
It also revealed a plan to inject 442.9 billion won to upgrade vehicles in Korea. The intent is to build a foundation that allows production to continue beyond 2028. However, there was no specific schedule for how much would be invested at what time.
Hector Villarreal, GM Korea president and chief executive officer (CEO), said, "We will continue to invest in our domestic production base to strengthen mid- to long-term competitiveness," adding, "GM's firm commitment to Korea remains unchanged, and we are more prepared than ever for a sustainable future."
GM Korea said it will strengthen its portfolio in the domestic market with SUVs, next-generation internal combustion engine vehicles, and electric vehicles, while continuing to apply advanced technologies such as Super Cruise. It will officially launch the premium brand Buick in Korea next year and release one model. It also unveiled brand expansion plans, including launching three models under GMC, its commercial-vehicle-focused brand.
GM Korea also announced plans to strengthen Korea's role as a global engineering hub through a newly built Virtual Engineering Lab at the Cheongna Proving Ground. The virtual center integrates into one 10 test facilities that had been dispersed in-house, including an electric system bench, Virtual Reality (VR) workup stations, and driver-in-the-loop simulators.
Brian McMurray, head of GM Technical Center Korea, said, "The renovation of the Cheongna Proving Ground, including the new virtual center, accelerates the shift to integrated virtual-physical development," adding, "These changes will play a key role in strengthening GM's global engineering capabilities."