KDB Moves to Block GM Korea’s Bid to Spin Off R&D Center

State-run Korea Development Bank has filed a preliminary injunction to stop General Motors Co. from establishing GM Korea’s r&d center as a separate company.

GM claims the move will improve the efficiency of its product development work in South Korea. The company’s labor union fears that GM may be preparing to shutdown carmaking operations in Korea.

KDB, which holds a 17% stake in GM Korea, says its injunction bars GM from holding a general shareholders meeting. The bank says it can’t make a decision about whether to support or oppose GM’s plan until it gets more details about the scheme.

GM and KDB agreed in May to a $7.2 billion restructuring of GM Korea to avert bankruptcy. GM owns 77% of the company, but KDB has veto power over such major decisions as asset sales.