As speculation grows over the potential withdrawal of GM Korea Co., fueled by U.S. President Donald Trump‘s tariff policies, both employees at GM Korea plants as well as the surrounding communities are grappling with increasing levels of uncertainty and anxiety.

During visits last week to GM Korea’s Bupyeong and Changwon plants, Maeil Business Newspaper observed an uneasy atmosphere among production line employees and in the surrounding areas. The Changwon plant, which faced shutdown concerns in 2018 when GM Korea’s Gunsan plant closed, has continued operations thanks to government mediation. GM agreed to maintain the Bupyeong and Changwon plants for at least 10 years and the Changwon plant underwent painful restructuring, including merging two assembly lines and offering voluntary retirements, at the time.

Since then, GM Korea has made significant investments in the Changwon plant, which began producing the Trax crossover in 2022. This has led to record-high performance, with the plant exporting 296,000 units of the Trax in 2024 that accounted for more than 62 percent of GM Korea’s total exports (474,700 vehicles). The plant’s car exports alone were valued at $3.6 billion, comprising 15.7 percent of Changwon’s total exports ($22.8 billion).

But uncertainty about future production plans, including electric vehicles, continues to cast a shadow over the plant’s long-term prospects, particularly in light of Trump’s tariff policies. The looming expiration of GM’s commitment to maintain GM Korea until 2027 further heightened concerns.

In addition to 2,800 direct employees at the Changwon plant, around 20,000 workers - including second and third-tier suppliers, are affected by GM Korea’s operations. A potential withdrawal by GM would have a significant impact, not only on Changwon but on the entire South Gyeongsang Province’s regional economy.

GM Korea’s suppliers are closely monitoring the situation. The Changwon plant has around 20 primary suppliers, and when second and third-tier suppliers were included, the number exceeds 1,000. “While there are no signs of reduced production yet, if GM Korea pulls out as feared, it would deal a fatal blow to the automotive parts industry in this region,” a supplier said.

Local governments are also preparing for various potential scenarios. “The Changwon plant has already received billions of dollars in investments and has substantial production, so we are cautious about the rumors of withdrawal,” an official from the provincial government said, although adding that the provincial government is preparing a “comprehensive plan” to address any impact on GM Korea and the region’s automotive parts industry if the Trump tariff plans are realized.

The ongoing uncertainty is particularly fueled by the aftermath of the 2018 closure of GM’s Gunsan plant, which left many workers unemployed and struggling to recover their previous standard of living. According to Statistics Korea, the number of unemployed in Gunsan, which had been around 2,000, surged to 5,000 following the GM Korea closure in 2018. It was not until the first half of 2022, after the Covid-19 pandemic had subsided, that the number of unemployed in Gunsan returned to pre-pandemic levels.

Meanwhile, the GM Korea union held a seminar at the Incheon Bupyeong plant on Thursday to discuss the impact of the new Trump administration’s tariffs on the automotive industry and GM Korea. During the event, participants expressed concerns about the company’s future after domestic sales fell below 5 percent in 2024 for the first time.

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