GM Korea Company, the South Korean arm of U.S. automaker General Motors (GM), is reportedly preparing to close its in-house aftermarket service operations in the country by early next year as part of a broader cost-cutting initiative.
GM Korea has declared that it will cease accepting service appointments at its nine remaining company-operated service centers starting in December. All service operations will be handed over to its network of independent service partners by February next year. The company currently has about 380 partner-operated service centers across South Korea, which will remain fully operational.
GM Korea reported a 39% drop in domestic sales to 12,979 units during the first ten months of 2025, as the company continues to face tough competition from local manufacturers Hyundai Motor and Kia Corporation, along with an increasing number of foreign brands.
GM Korea’s export performance has also been hit by the introduction of import tariffs in the United States.
The company manufactured nearly 500,000 vehicles last year, with more than 80% reportedly destined for the U.S. market. In the first ten months of 2025, exports fell by 6% to 353,032 units, around 85% of which were shipped to the U.S.
GM Korea’s manufacturing operations could face shutdown risks if its exports to the U.S. become less competitive. The company has been reassessing its business in South Korea since the second quarter of 2025, preparing for the financial impact of U.S. import tariffs. Some local analysts speculate that the move to shut down its in-house service network signals the start of GM’s withdrawal from the South Korean market.
Although the U.S. government recently reduced tariffs on South Korean imports from the 25% rate imposed in April to 15%, the duty still represents a substantial added cost that undermines the competitiveness of GM Korea’s exports to the U.S.
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