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South Korea willing to offer short-term loans to GM Korea

FILE PHOTO: The main gate to GM Korea's Gunsan factory is seen in Gunsan, South Korea February 13, 2018. Yonhap via REUTERS/File Photo

SEOUL (Reuters) - South Korea's state-run Korea Development Bank said on Wednesday it would provide short-term loans to General Motors' South Korean unit after April, should the company cooperate with due diligence.

The two sides have agreed that the due diligence, which started in earnest on Wednesday, would continue for two months, the KDB said in a statement.

GM Korea has previously said that without new funding from its major shareholders it would have a first-quarter "cash crisis".

(Reporting by Hyunjoo Jin; Editing by Stephen Coates)