Korea Deal Forbids GM from Selling Stake in Local Unit for 5 Years

General Motors Co. won’t be able to sell any of its 77% stake in GM Korea over the next five years under a bailout deal for the troubled unit.

The U.S. carmaker is further required to retain at least 35% of the struggling unit between 2023 and 2028, South Korea Finance Minister Kim Dong-yeon tells reporters.

As proof of its commitment, GM also has agreed to relocate its Asia-Pacific headquarters to Korea from Singapore, according to the Financial Times. The office will manage GM product research, production and sales activities in Asia Pacific, excluding China.

GM and Korea’s state-run Korea Development Bank, which owns 17% of GM Korea, will sign a binding agreement on May 11, according to Kim. The two parties have agreed to invest $7.2 billion in GM Korea, including a $2.8 billion debt-for-equity swap involving current loans owed to GM by the subsidiary.