GM Korea Posts 2013 Operating Profit in Excess of 1 Tril. Won

SEOUL, KOREA - GM Korea posted an operating profit in excess of 1 trillion won last year despite a fall in exports to Europe. According to an audit report submitted to the Financial Supervisory Service on April 14, GM Korea recorded last year an sales revenue of 15,603.0 billion won and an operating profit of 1,086.4 billion won. 

 

 

Although its sales revenue declined 2.1 percent from the previous year largely because of a setback in exports by 3.9 percent year on year, its operating profit turned to the black from a loss of 340.3 billion won in 2012.

 

A GM Korea official said, "The good performance was because of the reserve fund of 789 billion won in preparation for ordinary wage-related lawsuits reflected in the last year's operating profit."

 

The net loss of 108 billion won in 2012 also turned to a profit of 100.9 billion won. As the 631.6-billion-won corporate tax was charged in the 2013 financial statement, the net profit was much below the level of operating profit.

 

The cost for GM Korea incurred from the withdrawal of the Chevrolet brand from the European market has been charged to GM International Operations in the headquarters. But the actual cost was 290 billion won, much lower than expected earlier at 660 billion won.