GM Korea, 2024 Net Profit of KRW 2.207.7 trillion..It turned out that this happened
Apr 15, 2025
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◈Stabilization of key indicators in GM Korea's business performance and establishment of a virtuous cycle structure by increasing production According to the report, GM Korea recorded sales of 14.377 trillion won in 2024, net profit of 2.2077 trillion won and operating profit of 1.3572 trillion won.Among them, net income surged, reflecting 642 billion deferred tax as profits.Cash and cash equivalents also stood at 2.554 trillion won.Inventory also recorded 887.4 billion, down 251.3 billion from 2023.This proves that the inventory turnover rate of GM vehicles in Korea is very high.
AIR Lab viewed the trend of stabilizing major indicators as 'settling a virtuous cycle structure according to the recovery of production volume'.And GM Korea predicted that by securing a large amount of liquidity, it will be smooth to establish a sustainable management foundation such as service/R&D investment.
◈We need a growth plan, such as increasing 'exchange hedge' losses and loyalty spending and developing our own models
Meanwhile, it was also pointed out that the debt items and detailed indicators in the comments deteriorated.Representatively, there are derivatives liabilities (currency hedging) and royalty expenditures.The currency forward trading derivative, known as the so-called "currency hedge," was identified as the cause of GM Korea's deficit in 2008 and was sorted out in 2013.However, as currency forward trading derivatives were reintroduced, derivatives liabilities amounted to 181.5 billion last year alone.
Royalty costs were also 563.6 billion, up 11% from 2023.In the same way, business support expenses spent on the headquarters also increased by nearly 23 billion won.Business support and loyalty expenses accounted for 4.14% of sales, worsening the financial structure."It is very regrettable considering that GM Korea has made royalties in the past," AIR Lab said in a report. "This royalty expenditure paradoxically reveals the need for a self-developed model."
◈ GM Brazil and China Joint Venture Business Difficulties Deepen, Need to Keep a Continuous Watch In addition to
, internal and external trends related to GM Korea were mentioned.In particular, GM Brazil and GM Canada are experiencing difficulties in management as they have stopped operating their plants.Of these, GM Brazil has decided to shut down its Gravatai plant for two months until June, citing sluggish sales.Furthermore, local media cited the trend of reducing the number of sales branches and dealer groups.
Shanghai GM (SAIC-GM), a Chinese joint venture, also saw its sales fall 2.24% to 109,000 units in the first quarter.The sluggish sales are intensifying, with the factory utilization rate also falling to 22% last year. GM's "Durant Guild," an imported car business in China, is also being affected by consumer sentiment.For this reason, AIR Lab predicted that GM's business in China will not be able to recover for the time being.
"It is encouraging that GM Korea has made profits even when GM's global business is difficult," said Kim Dong-young, an advisory researcher at AIR Lab. "As there is room for exports to shrink due to tariff problems, it is necessary to manage risks such as currency hedging and increased royalty spending."The "2024 Korea GM Management Performance Analysis" can be found on the AIR Lab website and the official blog of the research institute.
Editor Kim Tae-jin, tj.kim@carguy.kr
This article was translated by Naver AI translator.
