Daewoo
Overview
 
Daewoo or the Daewoo Group was a major South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

n chaebol
Chaebol
Chaebol refers to a South Korean form of business conglomerate. They are global multinationals owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate"...

(conglomerate). It was founded on 22 March 1967 as Daewoo Industrial and was dismantled by the Korean government in 1999. Prior to the Asian Financial Crisis of 1998, Daewoo was the second largest conglomerate in Korea after Hyundai Group
Hyundai Group
Hyundai Group is a South Korean conglomerate founded by Chung Ju-yung. The first company in the group was founded in 1947 as a construction company. With government assistance, Chung and his family members rapidly expanded into various industries, eventually becoming South Korea's second biggest...

, followed by LG Group
LG Group
LG Corp. is the second-largest South Korean conglomerate company following Samsung, and it is headquartered in the LG Twin Towers in Yeouido-dong, Yeongdeungpo-gu, Seoul. LG produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display,...

 and Samsung Group
Samsung Group
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

. There were about 20 divisions under the Daewoo Group, some of which survive today as independent companies.

There were about 20 divisions in the Daewoo Group, which before the crisis was the second largest conglomerate in Korea after Hyundai Group
Hyundai Group
Hyundai Group is a South Korean conglomerate founded by Chung Ju-yung. The first company in the group was founded in 1947 as a construction company. With government assistance, Chung and his family members rapidly expanded into various industries, eventually becoming South Korea's second biggest...

, followed by LG Group
LG Group
LG Corp. is the second-largest South Korean conglomerate company following Samsung, and it is headquartered in the LG Twin Towers in Yeouido-dong, Yeongdeungpo-gu, Seoul. LG produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display,...

 and Samsung Group
Samsung Group
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

.

Daewoo Group had under its umbrella several major corporations:
  • Daewoo Motor, the motor vehicles division (sub-branch Daewoo Automotive Components Co.
Encyclopedia
Daewoo or the Daewoo Group was a major South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

n chaebol
Chaebol
Chaebol refers to a South Korean form of business conglomerate. They are global multinationals owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate"...

(conglomerate). It was founded on 22 March 1967 as Daewoo Industrial and was dismantled by the Korean government in 1999. Prior to the Asian Financial Crisis of 1998, Daewoo was the second largest conglomerate in Korea after Hyundai Group
Hyundai Group
Hyundai Group is a South Korean conglomerate founded by Chung Ju-yung. The first company in the group was founded in 1947 as a construction company. With government assistance, Chung and his family members rapidly expanded into various industries, eventually becoming South Korea's second biggest...

, followed by LG Group
LG Group
LG Corp. is the second-largest South Korean conglomerate company following Samsung, and it is headquartered in the LG Twin Towers in Yeouido-dong, Yeongdeungpo-gu, Seoul. LG produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display,...

 and Samsung Group
Samsung Group
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

. There were about 20 divisions under the Daewoo Group, some of which survive today as independent companies.

Corporations

There were about 20 divisions in the Daewoo Group, which before the crisis was the second largest conglomerate in Korea after Hyundai Group
Hyundai Group
Hyundai Group is a South Korean conglomerate founded by Chung Ju-yung. The first company in the group was founded in 1947 as a construction company. With government assistance, Chung and his family members rapidly expanded into various industries, eventually becoming South Korea's second biggest...

, followed by LG Group
LG Group
LG Corp. is the second-largest South Korean conglomerate company following Samsung, and it is headquartered in the LG Twin Towers in Yeouido-dong, Yeongdeungpo-gu, Seoul. LG produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display,...

 and Samsung Group
Samsung Group
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

.

Daewoo Group had under its umbrella several major corporations:
  • Daewoo Motor, the motor vehicles division (sub-branch Daewoo Automotive Components Co. Ltd., Daewoo Bus Co., Ltd., Daewoo Commercial Vehicle Co. Ltd.)
  • Daewoo Motor Sales
    Daewoo Motor Sales
    Daewoo Motor Sales is an auto sales company headquartered in Seoul, South Korea. It was established in 1991. Daewoo Motor Sales operates dealerships in South Korea which sell vehicles from SsangYong, Daewoo Bus, and Tata Daewoo Commercial Vehicle. In the past, Daewoo Motor Sales has sold vehicles...

    , an auto sales company sold Daewoo but also GM cars and others in Korea (Sub-branch : Architectural Iaan Div., SAA-Seoul Auto Auction)
  • Daewoo Electronics
    Daewoo Electronics
    Daewoo Electronics is a home electronics company. Established in 1971, it has since grown into a global business with more than 64 production sites, R&D and sales centres in more than 40 countries worldwide. Daewoo Electronics Sales UK was established in November 1993. It is the third largest...

    , a strong force both internationally and in Korea (sub-branch Daewoo Electronic Components Co. Ltd, Daewoo Electric Motor Industries Ltd., Orion Electric Co. Ltd.)
  • Daewoo Precision Industries produced small calibre firearms and auto parts. It was spun off in February 2002 and relisted on the Korean stock-market in March 2002. It was renamed S&T Daewoo
    S&T Daewoo
    S&T Daewoo is a South Korean firearms and auto parts manufacturer founded in 1981. Its firearms equip most frontline units of the Republic of Korea Armed Forces.- History :...

     Co., Ltd in September 2006
  • Daewoo Textile Co. Ltd.
  • Daewoo Heavy Industries (DHI), which created heavy duty machinery

  • Daewoo Shipbuilding & Marine Engineering
    Daewoo Shipbuilding & Marine Engineering
    Daewoo Shipbuilding & Marine Engineering Co., Ltd ' is the second largest shipbuilder in the world and one of the "Big Three" shipbuilders of South Korea.On 21 February 2011, the A. P...

    produced container ships, oil tankers and planes. It spun off in 2000 and became an independent company, DSME, re-listing on the Korean stockmarket in 2001
  • Daewoo Securities
    Daewoo Securities
    Daewoo Securities is the largest stock brokerage and investment banking firm by market capitalization in Korea. The company has been a subsidiary of KDB Financial Group since the early 2000s. Its name orginates from the large Daewoo Conglomerate of Korea to which it originally belonged to.Daewoo...

    , a financial securities company
  • Daewoo Telecom Ltd., which concentrated on the telecommunications (sub-branch Daewoo Informations Systems Co. Ltd.)
  • Daewoo Corporation, (sub-branch Daewoo Construction, Keangnam Enterprises) which built highways, dams and skyscrapers, especially in the Middle East and Africa
  • Daewoo International, a trading organization
  • Daewoo Development Co. Ltd., managing Daewoo hotels around the world and had the Hilton Hotels
    Hilton Hotels
    Hilton Hotels & Resorts is an international chain of full-service hotels and resorts founded by Conrad Hilton and now owned by Hilton Worldwide. Hilton hotels are either owned by, managed by, or franchised to independent operators by Hilton Worldwide. Hilton Hotels became the first coast-to-coast...

     franchise in South Korea
  • IAE (Institute for Advanced Engineering) : research and development integrated center


A further subsidiary was the Daewoo Development Company, funded by cash from the Group, and set up to develop hotels. Seven were built in Korea, China, Vietnam, and Africa. They were personally designed and furnished by Kim Woojoong's socialite wife Heeja who was Chairwoman of the company. The most lavish was/is the 5-star Hanoi Daewoo Hotel which cost US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

163 million in 1996 and was decorated by Heeja with fine art, porcelain, sculptures, and marble. She invited 3000 guests to the opening, including Russian President Vladimir Putin. There is an 18-hole golf course in the grounds and a swimming pool which is thought to be the largest in Asia. Kim is believed to have spent time there while "on the run".

----

Daewoo Motor Co.,Ltd.

Daewoo Motor Co., Ltd. was founded when the Daewoo Group purchased Saehan Motor
Saehan Motor
The Saehan Motor Company was a South-Korean car maker founded in 1976, part of the Saehan Corporations, which was born on the collaboration of Shinjin Industrial Company and the will of General Motors to introduce their products on the South Korean market...

in 1978, but the Daewoo Motor name appeared only in 1983.

Daewoo Motor arrived in the UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 in 1995. At the time, it was the only manufacturer not using traditional dealerships; it owned and operated its own retail network. It was once considered to be near the top 10 motor companies in terms of production.

Daewoo was forced to sell off its automotive arm, Daewoo Motor, to General Motors in 2001. Since then, GM has been moving to rebadge Daewoo cars as models for many brands, including Chevrolet
Chevrolet
Chevrolet , also known as Chevy , is a brand of vehicle produced by General Motors Company . Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918...

, Buick
Buick
Buick is a premium brand of General Motors . Buick models are sold in the United States, Canada, Mexico, China, Taiwan, and Israel, with China being its largest market. Buick holds the distinction as the oldest active American make...

, Pontiac
Pontiac
Pontiac was an automobile brand that was established in 1926 as a companion make for General Motors' Oakland. Quickly overtaking its parent in popularity, it supplanted the Oakland brand entirely by 1933 and, for most of its life, became a companion make for Chevrolet. Pontiac was sold in the...

, Holden
Holden
GM Holden Ltd is an automaker that operates in Australia, based in Port Melbourne, Victoria. The company was founded in 1856 as a saddlery manufacturer. In 1908 it moved into the automotive field, before becoming a subsidiary of the U.S.-based General Motors in 1931...

, and Suzuki
Suzuki
is a Japanese multinational corporation headquartered in Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles , outboard marine engines, wheelchairs and a variety of other small internal combustion engines...

. The GM Daewoo nameplate was kept only for South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

 and Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...

 until 2011.

Daewoo Commercial Vehicles Division was sold to Tata Motors
Tata Motors
Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO...

 of India.

History

The Daewoo Group was founded by Kim Woo-jung
Kim Woo-jung
Kim Woo-choong was the founder and chairman of the Daewoo Group. Born on December 17, 1936, in Daegu, he was the son of the Provincial Governor....

 in March 1967. He was the son of the Provincial Governor of Daegu
Daegu
Daegu , also known as Taegu, and officially the Daegu Metropolitan City, is a city in South Korea, the fourth largest after Seoul, Busan, and Incheon, and the third largest metropolitan area in the country with over 2.5 million residents. The city is the capital and principal city of the...

. He graduated from the Kyonggi High School, then finished with an Economics Degree at Yonsei University
Yonsei University
Yonsei University is a Christian private research university, located in Seoul, South Korea. Established in 1885, it is one of the oldest universities in South Korea, the top private comprehensive universities in South Korea, and is widely regarded as one of the top three comprehensive...

 in Seoul
Seoul
Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...

. It became one of the Big Four chaebol
Chaebol
Chaebol refers to a South Korean form of business conglomerate. They are global multinationals owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate"...

 in South Korea. An industrial and multi-faceted service conglomerate, Daewoo was prominent in expanding its global market through joint ventures all over the world.

During the 1960s, after the end of the Syngman Rhee
Syngman Rhee
Syngman Rhee or Yi Seungman was the first president of South Korea. His presidency, from August 1948 to April 1960, remains controversial, affected by Cold War tensions on the Korean peninsula and elsewhere. Rhee was regarded as an anti-Communist and a strongman, and he led South Korea through the...

 government, the new government of Park Chung Hee intervened to promote growth and development in the country. It increased access to resources, promoted exports, financed industrialization, and provided protection from competition to the chaebol in exchange for a company's political support. In the beginning, the Korean government instigated a series of five-year plans under which the chaebol were required to achieve a number of basic objectives.

Daewoo did not become a major player until the second five-year plan. Daewoo benefited from government-sponsored cheap loans based on potential export profits. The company initially concentrated on labor-intensive clothing and textile industries that provided high profit margins. The most significant resource in this plan was South Korea's large workforce.

The third and fourth of the five-year plans occurred from 1973 to 1981. During this period, the country's labor force was in high demand. Competition from other countries began eroding Korea's competitive edge. The government responded to this change by concentrating its effort on mechanical and electrical engineering, shipbuilding, petrochemicals, construction, and military initiatives. At the end of this period, the government forced Daewoo into shipbuilding. Kim was reluctant to enter this industry, but Daewoo soon earned a reputation for producing competitively priced ships and oil rigs.

During the next decade, the Korean government became more liberal in economic policies. Small private companies were encouraged, protectionist import restrictions were loosened, and the government reduced positive discrimination, to encourage free market trade and to force the chaebol to be more aggressive abroad. Daewoo responded by establishing a number of joint ventures with U.S. and European companies. It expanded exports of machine tools, defense products (under the S&T Daewoo company), aerospace interests, and semiconductor design and manufacturing. Eventually, it began to build civilian helicopters and airplanes, priced considerably cheaper than those produced by its U.S. counterparts. It also expanded efforts in the automotive industry and was ranked as the seventh largest car exporter and the sixth largest car manufacturer in the world. Throughout this period, Daewoo experienced great success at turning around faltering companies in Korea.

In the 1980s and early 1990s, the Daewoo Group also produced consumer electronics, computers, telecommunication
Telecommunication
Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...

 products, construction equipment, buildings, and musical instruments (Daewoo Piano).

Crisis and collapse

Daewoo Group ran into deep financial trouble in 1998 due to the Asian financial crisis, increasingly thin relationships with the Korean government under President Kim Dae Jung
Kim Dae Jung
Kim Dae-jung was President of South Korea from 1998 to 2003, and the 2000 Nobel Peace Prize recipient. He came to be called the "Nelson Mandela of Asia" for his long-standing opposition to authoritarian rule.-Early life:...

, and its own poor financial management. With the Korean government in deficit, traditional reliance on access to cheap and nearly unlimited credit was severely restricted.

In 1998, when the economic crisis forced most of the chaebol to cut back, Daewoo brazenly added 14 new firms to its existing 275 subsidiaries, in a year where the group lost a total of 550 billion won ($458 million) on sales of 62 trillion won ($51 billion). At the end of 1997, South Korea’s four biggest chaebol had a debt of nearly five times their equity. While Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

 and LG
LG
LG may refer to:*LG Corp., a South Korean electronics and petrochemicals conglomerate*LG Electronics, an affiliate of the South Korean LG Group which produces electronic products* Lawrence Graham, a London headquartered firm of business lawyers...

 cut back in the midst of the economic crisis, Daewoo took on 40% more debt."

By 1999, Daewoo, the second largest conglomerate in South Korea with interests in about 100 countries, went bankrupt, with debts of about 80 billion won ($84.3 million).

Soon after the demise, Chairman Kim Woo-Choong fled to France, and former Daewoo factory workers put up "Wanted" posters with his picture. Kim returned to Korea in June 2005 and was promptly arrested, after spending six years abroad. Kim was charged with masterminding accounting fraud worth 41 trillion won ($43.4 billion), illegally borrowing 9.8 trillion won ($10.3 billion) and smuggling $3.2 billion out of the country, according to South Korea's Yonhap News Agency. On 30 May 2006, Kim was sentenced to 10 years in prison after being convicted of fraud and embezzlement. On the last day of the trial, Kim tearfully addressed the court, "I cannot dodge my responsibility of wrongly buttoning up the final button of fate."

Factors that affected Daewoo's performance

  • Government intervention: Government policy served as a double edged sword: it protected the chaebol, providing them with massive subsidies, unlimited cheap credit, and protection against foreign competition. However, the price for these services was total loyalty to the government. Chaebol were forced to take over industries against their will.
  • Labor market: The traditional work ethic that helped Korea reach economic prosperity has been threatened as workers have begun increasingly violent protests against years of long hours and low pay. Daewoo shipbuilding suffered heavy losses due to workers' demands for pay raises.
  • Operating in a global economy: International demand for free trade is forcing the Korean government to open its market. The chaebol will lose its protectionist import controls. Most recently, the North American Free Trade Agreement
    North American Free Trade Agreement
    The North American Free Trade Agreement or NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada – United States Free Trade Agreement...

     and the European Economic Community
    European Economic Community
    The European Economic Community The European Economic Community (EEC) The European Economic Community (EEC) (also known as the Common Market in the English-speaking world, renamed the European Community (EC) in 1993The information in this article primarily covers the EEC's time as an independent...

     imposed trade limitations.
  • Product quality from Korea: Korean products were considered to be of low quality.
  • By the 1990s, Daewoo Group was heavily leveraged, major markets were stagnant, expenditures on R&D were increasing, labor unrest was continuing, and government policy was turning against the company.
  • Kim was most recently charged with allegedly paying campaign contributions to former president Roh Tae Woo in exchange for a large government contract to build a submarine base.

Analysis

According to an article by the Economist, dated 19 August 1999, not long after Daewoo's insolvency, "Its failure was a long time coming."

The downfall of Daewoo was and still remains highly controversial, because of the sheer importance of chaebols in the national economy. The collapse caused billions of dollars in losses for both South Korean banks and the government, who were forced to stage-manage Daewoo's dissolution to soften the blow. The bankruptcy was not merely a financial, but also a political, crisis, and came as a shock to much of the nation.

Michael Schuman of Time
Time (magazine)
Time is an American news magazine. A European edition is published from London. Time Europe covers the Middle East, Africa and, since 2003, Latin America. An Asian edition is based in Hong Kong...

stated that while Daewoo's demise had significant consequences, it would have nonetheless been better than propping it up with fresh funds. There was a persistence of the belief that Daewoo and other Korean conglomerates were "too big to fail". Such belief led many bankers and investors to continually waste money on bailouts, despite the sign that Daewoo was unable to engineer a turnaround and repay these bad loans. Once the too-big-to-fail perception was dispelled, with large conglomerates no longer considered the safest investments, bankers and investors began financing new opportunities in areas which had been starved of capital, such as small firms, entrepreneurs and consumers. Korea's GDP actually rose after Daewoo's unwinding.

Schuman also noted a similar analogy with Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 during its lost decade of the 1990s
Lost Decade (Japan)
The is the time after the Japanese asset price bubble's collapse within the Japanese economy, which occurred gradually rather than catastrophically...

, where banks kept injecting new funds into unprofitable "zombie firms", on the belief that the firms were too big to fail. However, most of these companies were too debt-ridden to do much more than survive on further bailouts, which led to an economist describing Japan as a "loser's paradise." Schuman states that Japan's economy did not begin to recover until this practice had ended.

Breakup and present status

The group was reorganized into three separate parts: Daewoo Corporation
Daewoo Electronics
Daewoo Electronics is a home electronics company. Established in 1971, it has since grown into a global business with more than 64 production sites, R&D and sales centres in more than 40 countries worldwide. Daewoo Electronics Sales UK was established in November 1993. It is the third largest...

, Daewoo Engineering & Construction and Daewoo International Corporation. They are active in many markets, most significantly in steel processing, ship building and financial services. The corporate entity known as "Daewoo Corporation" is now known as "Daewoo Electronics
Daewoo Electronics
Daewoo Electronics is a home electronics company. Established in 1971, it has since grown into a global business with more than 64 production sites, R&D and sales centres in more than 40 countries worldwide. Daewoo Electronics Sales UK was established in November 1993. It is the third largest...

" and is focused only in manufacturing electronics.

Daewoo Electronics survives to this day despite bankruptcy, with a new brand logo "DE", but many of the other subsidiaries and divisions have become independent or simply perished under the "reorganisation" of the Korean government under Kim Dae Jung. In North America, Target
Target Corporation
Target Corporation, doing business as Target, is an American retailing company headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the United States, behind Walmart. The company is ranked at number 33 on the Fortune 500 and is a component of the Standard & Poor's...

 stores market Daewoo Electronics products under their "Trutech" brand on an ODM
Original Design Manufacturer
An original design manufacturer is a company which designs and manufactures a product which is specified and eventually branded by another firm for sale. Such companies allow the brand firm to produce without having to engage in the organization or running of a factory...

 basis.

In 2004, General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...

 pulled the Daewoo
GM Daewoo
GM Korea Company is South Korea's second largest automobile manufacturer and is a division of the General Motors Company. GM Korea's roots go back to the former Daewoo which was split from its parent company, Daewoo Group, in 2001...

 brand of vehicles out of Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

, citing irreparable brand damage. Later that same year, GM announced that Daewoo Motors in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

 would change its name to Chevrolet
Chevrolet
Chevrolet , also known as Chevy , is a brand of vehicle produced by General Motors Company . Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918...

 on 1 January 2005. In 2005, it was announced that Daewoo cars would have a Holden
Holden
GM Holden Ltd is an automaker that operates in Australia, based in Port Melbourne, Victoria. The company was founded in 1856 as a saddlery manufacturer. In 1908 it moved into the automotive field, before becoming a subsidiary of the U.S.-based General Motors in 1931...

 badge in Australia and New Zealand. In South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...

, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...

 and the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

, Daewoo models were already being sold as Chevrolets. Only in South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

 and Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...

 does the Daewoo marque survive.

The Daewoo commercial vehicle manufacturer was taken over by Tata Motors - the world's 5th largest medium and heavy commercial vehicle manufacturer.

Involvement in Burma

Daewoo is also moving into oil and gas industry. While Western oil and gas companies were unwilling to conduct business in Burma on account of the abysmal human rights record of the ruling military junta, Daewoo is one of three oil companies, along with the French company Total
Total S.A.
Total S.A. is a French multinational oil company and one of the six "Supermajor" oil companies in the world.Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and...

 and the American company Unocal, which is already, or is close to, starting gas production in the country(at the Yadana Field). During explorations, Daewoo found one of the largest gas fields in southeast Asia. The field is located at blocks A-1 and A-3 at the Shwe field, about 100 km off Sittwe in Rakhine state. The field will go into production in five years, thereby providing a lucrative (and probably the largest) source of hard currency for the ruling junta. Daewoo has long been one of the largest foreign investors in the country.

Daewoo International President Lee Tae-yong was convicted in South Korea for illegally selling military hardware to the junta.{Burma strikes Gold, Upstream 28 August 2008} Daewoo sold the military hardware apparently in exchange for the award of the offshore concession blocks to Daewoo. In court, Lee defended his actions as being in "South Korea's national interest" (Burma strikes Gold, Upstream 28 August 2008). On 15 November 2007, Lee and thirteen other South Koreans were convicted of illegally exporting weapons technology and equipment to Burma.

The Daewoo brand today

Today six companies remain with the Daewoo brand name:
  • Daewoo Electronics
    Daewoo Electronics
    Daewoo Electronics is a home electronics company. Established in 1971, it has since grown into a global business with more than 64 production sites, R&D and sales centres in more than 40 countries worldwide. Daewoo Electronics Sales UK was established in November 1993. It is the third largest...

     (DE) - Specializing in electronics
  • Daewoo Engineering & Construction - Specializing in construction
  • Daewoo International Corporation - Specializing in trading and investment
  • Daewoo Shipbuilding & Marine Engineering
    Daewoo Shipbuilding & Marine Engineering
    Daewoo Shipbuilding & Marine Engineering Co., Ltd ' is the second largest shipbuilder in the world and one of the "Big Three" shipbuilders of South Korea.On 21 February 2011, the A. P...

     (DSME) - Specializing in shipbuilding
  • S&T Daewoo
    S&T Daewoo
    S&T Daewoo is a South Korean firearms and auto parts manufacturer founded in 1981. Its firearms equip most frontline units of the Republic of Korea Armed Forces.- History :...

     - Specializing in small arms manufacture
  • Tata Daewoo Commercial Vehicle
    Tata Daewoo Commercial Vehicle
    Tata Daewoo is a commercial vehicle manufacturer headquartered in Gunsan, Jeollabuk-do, South Korea and owned by Tata Motors. It is the second-largest heavy commercial vehicle manufacturer in South Korea....

     - Specializing in commercial vehicles, wholly owned by Tata

Corporate websites


See also

  • Chaebol
    Chaebol
    Chaebol refers to a South Korean form of business conglomerate. They are global multinationals owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate"...

  • Economy of South Korea
    Economy of South Korea
    South Korea has a market economy which ranks 15th in the world by nominal GDP and 12th by purchasing power parity , identifying it as one of the G-20 major economies. It is a high-income developed country, with a developed market, and is a member of OECD...

  • Flanders Loyalty
    Flanders Loyalty
    The Flanders Loyalty is an liquefied petroleum gas tanker owned by BW Gas, Oslo, Norway. She was built by Daewoo Shipbuilding and Marine Engineering Co, Ltd, Korea. She is one of two identically constructed ships, and she and her sister ship, the Flanders Liberty, are both built to transport...

  • List of South Korean companies

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