GM Confirms Talks to Boost Stake in Korea Unit

General Motors Co. says it has offered to buy the Korea Development Bank's 17% stake in GM Korea. Reuters reported the talks earlier this week.

GM Korea CEO Sergio Rocha tells reporters that several of the automaker's executives met last week with officials from the state-run bank. He did not disclose the terms of GM's offer.

The American company owns 77% of the Korea carmaker. But KDB's holding gives it veto power over company decisions. GM's Chinese partner Shanghai Automotive Industry Corp. holds a 6% stake in the company, which was known until last year as GM Daewoo Auto & Technology.

GM Korea develops and builds some of the U.S. company's smallest vehicles. The unit produced about one-quarter of all Chevrolet vehicles sold worldwide.