GM Korea has shut the gates to its Gunsan plant today ending its two-decades long operations.
The shutdown comes as the South Korean government and the U.S.-based automaker decided to restructure the cash-strapped unit's operations in Korea.
But on the local-level, though,... it's expected to deal a massive blow to the regional economy.
Oh Soo-young reports.
General Motors has closed one of its four plants in South Korea,... leaving an economic vacuum in the western city of Gunsan.
The automaker's decision came in February as part of its corporate restructuring efforts,... bringing the factory's 22-year history of car manufacturing to an end.
Of the factory's 18-hundred workers, most have taken voluntary retirement, 400 unpaid leave -- while 200 are awaiting placements at GM Korea's three remaining plants.
However, the fallout of the shutdown is expected to be far-reaching.
Churning out some 270-thousand vehicles a year,... the factory accounted for half of Gunsan's exports, and a third of total exports for the greater Jeollabuk-do Province.
The livelihoods of some twelve-thousand local workers, employed by 130 affiliates and subcontractors that supplied auto parts to the factory, are on the line.
Other local businesses, including restaurants and real estate agencies, are also expected to suffer due to the outflow of workers.
To mitigate the impact on the local economy, some 20 million U.S. dollars from the central government's supplementary budget this year has been earmarked to support Gunsan's workers and businesses.
The government plans to roll out employment support and take measures to attract new businesses to the city.
Even so, experts doubt the region will ever be able to fill the gap left by GM's departure.
"0:00 There doesn't seem to be a large company that wants to move its operations to Gunsan... 0:27And I think part of the problem is that the region has become less attractive because GM Korea's been there so long that I think Gunsan really didn't put much effort into attracting other businesses."
However, the expert says the initial pain of structural reform may pay off eventually,... leaving the region with a glint of light at the end of tunnel.
" They do have a lot of people who are familiar with how manufacturing works so there is some human capital there that they can use. They should have good road systems and if nothing else they have the large factories that GM Korea used that they may be able to utilize elsewhere."
The expert also urged the authorities to act quickly as the plant is now shut for good, and tens of thousands of local residents face an uncertain future.
Oh Soo-young, Arirang News, Gunsan.
