Travel ban lifted for GM Korea CEO

The South Korean government on Friday lifted an overseas travel ban on GM Korea CEO Kaher Kazem, almost 16 months after the Australian GM executive was barred from leaving the country on charges of illegally outsourcing labor.

Kazen is currently standing trial for violating labor laws after the carmaker was found to have hired some 1,719 workers from 24 subcontractors to work at its local plants between September 2017 and December 2020. The Seoul headquarters is suspected to have directly instructed and supervised the illegal labor outsourcing.

With the investigations being launched, the Justice Ministry issued a travel ban on the GM Korea chief in 2020, but his appeal was accepted.

The ministry then imposed another travel ban, but withdrew it when the expiration date passed.

Early this month, the ministry issued a third travel ban on Kazen following his appointment as vice president of SAIC-GM, GM’s joint venture with the Chinese carmaker that goes into effect in June. He also immediately appealed the decision.

The latest court decision appears to have considered investor sentiment about the Korean authorities continuing to impose travel bans on a foreign executive.

Kazem, who took the helm of GM Korea in September 2017, has made efforts to improve the money-losing carmaker’s profitability overall while introducing new cars, including the fully-electric Chevrolet Volt.

GM Korea has not yet decided on his successor.