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UPDATE 1-GM Daewoo considering entering other Asian markets

(Adds backround, details)

SEOUL, Oct 28 (Reuters) - General Motors Corp said on Monday its South Korean venture, GM Daewoo Auto & Technology, was holding talks with a Chinese partner to bring Daewoo products to China and also looking into possibilities in Japan.

GM agreed in April to take a 42.1 percent stake -- the largest -- in GM Daewoo for $251 million, providing the world's largest automaker a springboard to expand in South Korea's automobile market, one of Asia's fastest-growing.

"We intend to leverage, to use the GM family, especially in China", Nick Reilly, GM Daewoo president and chief executive officer, told a press conference.

Reilly said the company had no immediate plans to bring GM architecture to Daewoo product lines.

But he said that the company was holding talks with Shanghai Automotive Industry Corp Group, China's third-largest auto firm, which is due to take a stake in GM Daewoo, about selling Daewoo products in China.

Reilly also said the company was looking into possibilities in the Japanese market, although had no immediate entry plans.

He said the company could rehire laid off workers from Daewoo if business took off.

GM Daewoo owns three plants formerly run by Daewoo Motor Co.

Earlier this month, Shanghai Automotive Industry Corp Group, said it would take a 10-percent stake in GM Daewoo, while Japan's Suzuki Motor Corp would own 14.9 percent. State-run Korea Development Bank has said it would take a 33 percent stake in GM Daewoo.

GM also said last week it was in talks with Chinese carmaker, Yantai Bodyworks Co and others, to expand its presence in China.

Yantai, based in and owned by China's coastal province of Shandong, makes cars using technology from Daewoo Motor.

GM and Shanghai Automotive roll out Buick sedans and family cars at a joint venture in Shanghai.

Global carmakers are jockeying for position in China, hoping to capitalise on the country's low manufacturing costs and rising incomes. Steady economic growth is expected to push China's car sales to one million this year, up 40 percent.

Reilly said there were no plans to GM Daewoo partners to sell cars in the South Korean market.

In South Korea, GM Daewoo faces the task of regaining market share lost to rivals Hyundai Motor Co , the country's largest automaker and its affiliate, Kia Motors Corp , during the years Daewoo Motor faced financial troubles after the collapse of parent Daewoo Group [DWGR.UL].

Also, smaller automakers, sport utility specialist Ssangyong Motor Co and unlisted Renault Samsung Motors Inc are also rapidly expanding automobile sales in South Korea.