GMAC Establishes Korean Branch

The car financing arm of General Motors will establish a Korean branch. GM the world's largest automaker operates a Korean manufacturing unit--GM Daewoo Auto & Technology.

GMAC Korea will become a holding company of GMAC Capital, a joint venture between GMAC and Samsung Card established with an investment of W20 billion (US$20 million) last June. GMAC holds an 80.5 percent stake and Samsung Card the rest. It plans to launch its business this year.

GMAC Korea president Bob Fall said that company would offer car financing programs to customers of GM Daewoo. GMAC has $300 billion in assets and earned $2.8 billion in net profit in 2003.

GMAC venture is not unique. GE Capital has invested heavily in Hyundai Capital, which finances domestic purchases of Hyundai Motor and Kia Motors cars in Korea.

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