General Motors set April 20 as the deadline for management and labor to submit an agreement on voluntary recovery measures for GM Korea. If they miss the deadline, the U.S. headquarters will apply for court receivership of GM Korea. As of April 19, the eve of the deadline, no agreement has been reached.

The labor and management of GM Korea began the eleventh round of negotiations on wages and collective bargaining at 2 p.m. on April 19. The labor union argued that priority should be on guaranteeing the employment of 680 workers at the Gunsan plant, who have not applied for voluntary retirement. They claimed that if this problem was solved, the company could cut an additional 100 billion won in welfare costs.

However, in the tenth negotiation on April 18, the company presented a plan to transfer only about a hundred office and production workers from the Gunsan plant to the Changwon factory and have the remaining workers go on unpaid leave or apply for voluntary retirement. The union fiercely opposed arguing that unpaid leave was practically a layoff, since the workers would not be able to return to work for five years.

The question of whether or not the South Korean government will fund GM Korea depends on a number of factors, such as the agreement reached by labor and management, the result of the interim due diligence by the Korea Development Bank (KDB), and the designation of a foreign investment zone. Resolving the problems at GM Korea begins with the labor-management agreement. The government has said that it would not provide funding unless labor and management settle. Recently, Lee Dong-geol, president of the Korea Development Bank, which is the second largest shareholder of GM Korea, also said, "There is no room for us to intervene in the dispute between labor and management. There is no way for us to intervene, nor should we intervene."

If labor and management fail to reach an agreement by April 20, the deadline set by General Motors, GM Korea will reportedly apply for court receivership. A GM Korea representative said, "If they fail to reach a tentative agreement, the board of directors, scheduled to meet on the evening of April 20, will make the decision on applying for court receivership. The application for court receivership will be submitted after April 23, a Monday, on the day of the default."

The Korea Development Bank said that it had no choice but to take legal action by applying for an injunction to suspend the proceedings for court receivership, if General Motors applied for court receivership without consent from the bank. Some industry insiders predict that General Motors will determine whether to apply for court receivership after the government's decision on additional funding based on the interim due diligence by the Korea Development Bank.