Many people were reassigned here when the Gunsan factory was closed. If (the factory in Bupyeong is also shut down), real estate listings will emerge, but the impact on restaurants will be much greater.
This alley is home to all GM Korea suppliers, and those large vehicles are all going to the GM factory. You could say half of Bupyeong is GM Korea.
On the 3rd, when U.S. President Donald Trump imposed tariffs of tens of percent on the whole world, GM Korea's Bupyeong factory in Cheongcheon-dong, Incheon, which is roughly the size of 1 million square meters (about 300,000 pyeong), similar to 136 soccer fields, saw many employees and vehicles coming and going. The GM Korea employees I met here expressed anxiety over the news of the U.S. tariffs. Nearby residents also appeared worried that GM Korea could not withstand the tariffs and might close the factory.
The tariff imposed at 25% on all imported cars by the U.S. went into effect at 1:01 p.m. on the 3rd. GM Korea exports more than 80% of its domestic production to the U.S., and if tariffs are applied, it will lose price competitiveness in the U.S. For GM, the rationale for manufacturing cars in Korea weakens.
The factory seemed to operate unaffected by the news of the tariff. Two large chimneys inside the main gate of the factory continually spewed white smoke and steam, and cars that appeared to be newly assembled were loaded onto large trucks and revealed outside the factory.
Choi (55), who was performing security duties at the factory entrance, said, "870 vehicles left the factory today alone. Most of them are for export and go directly to Incheon Port." Another employee entering the factory said, "From this year, we have stopped production on holidays. Until the tariff discussions started last year, we were operating 365 days, but production has now been reduced due to the tariff discussions. There is definitely a feeling of unease."
An employee leaving the factory's west gate said, "The interior is divided into production and development. The production side has become sensitive since late last year, while the atmosphere on the development side seems fine for now."
An employee from a partner company, wearing work clothes and a safety helmet, said that if GM Korea pulls out, they will have to look for another job. He stated, "I also work in other places, but GM Korea is my main job, so if it pulls out, my job disappears. There are 5 to 6 similar electrical construction companies, but many other construction and installation companies will be severely impacted."
As lunchtime approached, people flocked to the restaurants near the factory's west gate. Kim (36), who runs a meat restaurant nearby, said, "Not only lunch but also dinner gatherings can generate sales of several tens of thousands of won at once, which is really helpful. If GM Korea pulls out, the damage will be very significant." He added, "Some say that if GM Korea leaves, another corporation will come in, but we could end up like Gunsan, or even if a shopping mall comes in, we will still suffer."
GM acquired Daewoo Motors in 2002 and changed its name to GM Korea in 2011. Subsequently, in 2018, it closed the Gunsan factory and promised to maintain GM Korea until 2027 in exchange for 810 billion won in support from the Korean government. There was also an analysis that about 25% of Gunsan residents were affected when the Gunsan factory closed.
Kim (55), who runs a Korean restaurant near the GM Korea Bupyeong factory, said, "Most of our lunchtime customers are factory employees," and added, "The rumors about GM Korea pulling out are not good news, so everyone remains tight-lipped about it." Another part-time worker at a different Korean restaurant, Kim (35), noted, "Until just now, most of the customers were from GM."
Um Gyeong-seon (52), who runs a real estate agency in Cheongcheon-dong, said, "When the Gunsan factory was closed, many individuals were reassigned here, so transactions increased." He added, "It only accounts for about 20% of incoming customers, but if GM Korea leaves, the impact on the local economy will definitely be significant."
Local governments and corporations that do business with GM Korea have begun assessing their current status in case of emergencies. Incheon City reported, "There are 47 first-tier vendors for GM Korea in Incheon. While nothing has been confirmed yet, we might need to support them, so we are in the process of gathering information." Including second and third-tier suppliers in other regions, the total number of GM Korea partners is estimated to be around 3,000. A nearby financial institution doing business with GM Korea stated, "The funds GM Korea has deposited with us exceed 500 billion won, and it will be even more if we include others."
Citizens appear to hope that the withdrawal will not materialize. Jung Hyun-il (37), who works in a nearby public enterprise, said, "GM Korea has a large site and many suppliers. It would not be an exaggeration to say it accounts for 50% of Bupyeong, and it needs to stay and prosper." Taxi driver Lee (70) noted, "If you include employees, suppliers, and their families, the number of dependents reaches tens of thousands," adding, "If GM Korea withdraws, it will impact not just Bupyeong and Incheon, but also the national economy."
Professor Lee Ho-geun of Daeduck University's Future Automotive Department forecasted, "GM has continuously talked about withdrawal since eight years ago to induce government support. This time, too, the chances of withdrawal under the guise of tariffs are quite high." He continued, "The automotive industry has significant forward and backward linkages, and GM's export volume is around 350,000 units. (From the employees' perspective), accepting a wage reduction that could offset tariffs is more rational and the only option than losing their jobs."