Financial authorities reviewing accounting practices of GM Korea

SEOUL, Dec. 7 (Yonhap) -- South Korea's financial regulators have been reviewing the accounting practices of GM Korea Co., officials said Thursday, amid allegations that the local unit of General Motors Co. may have inflated the cost of sales.

In a statement, the Financial Services Commission (FSC) said the Financial Supervisory Service (FSS), which is directed by the FSC, is "closely" reviewing the accounting practices of GM Korea in regards to the allegations raised.

The FSC "will later decide on whether to launch an audit into GM Korea upon consideration of the opinions from the FSS," the statement said.

The statement came after local media reported that the FSC launched a "special audit" against GM Korea.

For years, concerns have lingered that General Motors may pull out from South Korea as the U.S. carmaker has been gradually reducing its presence in the country over poor sales and high labor costs.

In the first 11 months of this year, GM Korea's vehicle sales fell 12 percent on-year to 479,058 units.
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