General Motors has started to gradually cut its presence in South Korea due to rising labor costs and "militant unionism" according to Reuters.

The country represents a fifth of the company's overall production.

The automaker's plan has already been put into play as production of newer models won't be completed in South Korea.

"We need to make sure we mitigate risk in (South Korea), not over the next 2-3 years but over time, not to become too dependent on one product source," said one of three sources familiar with GM's plan, who declined to be identified due to the sensitivity of the matter, according to Reuters.

"If something goes wrong in Korea, whether it is cost, politics, or unions, it has an immediate impact."

South Korea accounts for approximately 20 percent of GM's annual global production of 9.5 million vehicles. Around 80 percent of those vehicles are then exported outside of the country.

GM Korea's labor union doesn't agree with the decision however, saying that talks of reducing its presence is "a bluff" designed to "intimated workers against seeking further pay hikes" according to Reuters.

In July, GM Korea's labor union reached an annual wage settlement that included $9,000 per member according to the labor union.

"Our view is that management is making threats to pressure us and make us cooperate," union spokesman Choi Jong-hak said according to Reuters.

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