A 57-year-old executive of the South Korean unit of U.S. carmaker General Motors Co. was formally arrested Friday on charges of receiving bribes in return for business favors.

The Incheon District Court issued a warrant to arrest the executive in charge of labor management, whose identity was withheld. He is suspected of collaborating with GM Korea Co.'s labor union leaders to give favors to a certain company when purchasing gifts for employees in return for some tens of millions of won.

Later in the day, prosecutors also arrested another company executive who resigned last month when the investigation began.

The legal action came a few days after prosecutors raided the headquarters of the company in Incheon, some 40 kilometers west of Seoul. (Yonhap)