SEOUL, South Korea (AP) — General Motors says it will close an underutilized factory in Gunsan, South Korea, by the end of May as part of a restructuring of its operations.

The move is a blow to the administration of President Moon Jae-in, who has made jobs and wages a priority since taking office in May 2017. A GM statement said Monday that it has proposed to its labor union and other stakeholders a plan involving further investments in South Korea that would help save jobs.

"As we are at a critical juncture of needing to make product allocation decisions, the ongoing discussions must demonst...