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{{short description|Defunct South Korean conglomerate}}
{{koreanname noimage|hangul=대우|hanja=大宇|rr=Dae-u|mr=Taeu}}
{{About||the division|Daewoo Electronics|the current incarnation of the company|GM Korea|7=Daewoo (disambiguation)}}
'''Daewoo''' (meaning "Great Universe") is a major ]n '']'' (conglomerate). It was founded in ], ] as ''Daewoo Industrial''.
{{Use dmy dates|date=April 2020}}
{{Infobox company
| name = Daewoo
| logo = Daewoo logo.svg
| logo_caption =
| type = ]
| image = Daewoo Building (1995).jpg
| image_caption = Former Daewoo Group headquarters in 1995
| foundation = {{start date and age|1967|3|22|df=y}}
| founder = ]
| defunct = {{end date and age|1999|11|1|df=y}}
| fate = Declared bankruptcy (see ])
| successor =
| location = ], South Korea
| key_people =
| industry =
| products =
| revenue =
| operating_income =
| net_income =
| num_employees = 320,000<ref></ref><ref></ref>
| parent =
| divisions = {{collapsible list|
* ]
* ]
* ]
* ]
* ]
* ]
* ]
* ]
}}
| subsid = {{plainlist|
* ]
* ]
* ]
* ]
}}
| homepage =
| footnotes =
| module = {{Infobox Korean name
| hangul=대우
| hanja={{linktext|大|宇}}
| rr=Daeu
| mr=Taeu
| child=yes}}
}}
'''Daewoo''' ({{IPAc-en|uk|ˈ|d|eɪ|.|uː}} {{respell|DAY|oo}}; {{IPAc-en|us|ˌ|d|eɪ|ˈ|w|uː}} {{respell|day|WOO}}; {{Korean|hangul=대우|hanja=大宇}}; {{IPA|ko|tɛ.u|IPA}}; literally "great universe" and a portmanteau of "''dae''" meaning great, and the given name of founder and chairman Kim Woo-choong) also known as the '''Daewoo Group''', was a major South Korean ] (type of conglomerate) and automobile manufacturer.


It was founded on 22 March 1967 as Daewoo Industrial and was declared bankrupt on 1 November 1999, with debts of about US$50 ] (equivalent to ${{Inflation|US|50|1999|r=0}}&nbsp;billion in {{Inflation/year|US}}). Prior to the ], Daewoo was the second largest conglomerate in South Korea after the ] and behind ] (later became LG Corporation). There were about 20 divisions under the Daewoo Group, some of which survived as independent companies.
]


==History== == History ==
=== Beginning and development ===
The Daewoo Group was founded by ] in March 1967. He was the son of the Provincial Governor of ].<ref>{{Cite book|last=Jacobs|first=A. J.|url=https://books.google.com/books?id=FtgoDwAAQBAJ&dq=cars+history+daewoo+archive&pg=PA317|title=Automotive FDI in Emerging Europe: Shifting Locales in the Motor Vehicle Industry|date=2017-06-19|publisher=Springer|isbn=978-1-137-40786-3|language=en}}</ref> He graduated from the Kyonggi High School, then finished with an Economics Degree at ] in ].{{when?|date=October 2023}}


During the 1960s, after the end of the ] government, the new government of ] 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.
Woo-Chong Kim founded the Daewoo Group in 1967. It became one of the Big Four ] 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 downfall of the Syngman Rhee government, the new government intervened to promote growth and development in the country. They increased access to resources, promoted exports, financed industrialization, and provided protection from competition. In exchange for a company’s loyalty, the government granted favorable treatment to the chaebol. In the beginning, the Korean government instigated a series of five-year plans where chaebol were forced to achieve a number of basic objectives. Daewoo did not become a major player until the second five-year plan. Daewoo began trading and benefited from government-sponsored cheap loans by borrowing 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 the South Koreans large workforce. The third and fourth phase of the five-year plan occurred from 1973 to 1981. During this period, the country’s labor force was in high demand. Competitions from other countries begin eroding Korea’s competitive edge. The government responded to this change by concentrating its effort on mechanical and electrical engineering, shipbuilding, petrochemicals, construction, and home base defense initiatives. During this period, Daewoo achieved its general trading company status and anger aroused from competing nations due to strict controls. At the end of this period, Government policy forced Daewoo into shipbuilding. Kim was reluctant to enter this type of industry because he felt that there were other chaebol better suited to handle the heavy engineering project. Nevertheless, Kim soon saw Daewoo earn a reputation for producing competitively priced ships and oilrigs. During the next decade, the Korean government became more liberal in their economic efforts. Small private companies were encouraged, protectionist imports were loosened, and the government stopped practicing positive discrimination. These moves were designed to encourage free market trade and to force the chaebol to be more aggressive abroad. Daewoo responded to the challenge by establishing a number of joint ventures with U.S. and European companies. They expanded exports of machine tools, defense products, aerospace interests, and semiconductor design and manufacturing. After a gradual learning curve, they begin to build civilian helicopters and airplanes, which were priced considerably cheaper than those produced by their U.S. counterparts. They expanded their efforts in the motor industry and was ranked as the seventh highest car exporter and the sixth largest car manufacturer in the world. Daewoo had excellent experience at turning around faltering companies in Korea.


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 because of South Korea's large and relatively inexpensive workforce.
==Daewoo's Growth Incentives==


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 South Korea's competitive edge. The government responded to this change by concentrating its efforts 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.
1. Government Interventions: Government policy served as a double edge sworn, 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. The government was constantly involved in their businesses and stifled their creativity.


During the next decade, the Korean government became more liberal in its 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 South Korea.
2. Labor Market: Traditional work ethics that helped Korea reach economic prosperity has been threatened as workers have begun increasingly violent protest against years of long hours and low pay. Daewoo shipbuilding suffered heavy loses due to workers demand for pay raises.


In the 1980s and early 1990s, the Daewoo Group also produced consumer electronics, computers, ] products, construction equipment, buildings, and musical instruments.
3. Operating in a Global Economy: International demands 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 and the European Economic Community imposed trade limitations.


=== Crisis and collapse ===
4. Product Quality from Korea: Korean products were considered cheap quality. Companies are trying to improve that image.
{{main|Daewoo dissolution and corruption scandal}}
Daewoo Group ran into deep financial trouble in 1998 due to the ], increasingly precarious relationships with the Korean government under President ], and its own poor financial management. With the Korean government in deficit, access to cheap and nearly unlimited credit was severely restricted.


In 1998, due to the impact of the foreign exchange crisis ln the end, after Daewoo group went bankrupt, dissolution subsidiaries, in a year where the group lost a total of {{KRWConvert|550|b|year=1998|showdate=no}} on sales of {{KRWConvert|62|t|year=1998|showdate=no}}. At the end of 1997, South Korea's fourth-largest chaebol had a debt of nearly five times their equity. While ] and ] cut back in the midst of the economic crisis, Daewoo took on 40% more debt.<ref name=":0">{{cite news|url=http://www.economist.com/node/233562 |title=South Korea: The death of Daewoo |publisher=The Economist |date= 19 August 1999|access-date=2015-10-13}}</ref>
5. By the 1990s, Daewoo Group was heavily leveraged, major markets were stagnant, expenditures on R&D were increasing, labor unrest continued, and government policy adds to their worries. 6. Kim was most recently charged with allegedly paying campaign contributions to former president Roh Tae Woo government in exchange for a large government contract to build a submarine base.


By 1999, Daewoo, the second largest conglomerate in South Korea with interests in about 100 countries, went bankrupt, with debts of about US$50 billion (equivalent to ${{Inflation|US|50|1999|r=0}}&nbsp;billion in {{Inflation/year|US}}).<ref name=":0" />
]


Soon after the demise, Kim Woo-choong fled to Vietnam, and former Daewoo factory workers put up ]s with his picture. Kim returned to Korea in June 2005 and was promptly arrested. He was charged with masterminding accounting fraud of 41 trillion won (US$43.4 billion), illegally borrowing 9.8 trillion won (US$10.3 billion), and smuggling US$3.2 billion out of the country, according to South Korea's Yonhap News Agency.<ref>{{cite news|url=http://www.cnn.com/2006/BUSINESS/05/30/skorea.daewoo/index.html |title= Daewoo founder Kim gets 10-yr term |date=30 May 2006 |access-date=2008-11-20 | work=CNN |archive-url = https://web.archive.org/web/20080408091248/http://www.cnn.com/2006/BUSINESS/05/30/skorea.daewoo/index.html |archive-date = April 8, 2008}}</ref> On 30 May 2006, Kim was sentenced to 10 years in prison after being convicted of fraud and embezzlement.<ref>{{Cite web|url=http://www.atimes.com/atimes/Korea/HF01Dg03.html|archive-url=https://web.archive.org/web/20060901233057/http://www.atimes.com/atimes/Korea/HF01Dg03.html|url-status=unfit|archive-date=September 1, 2006|title=Daewoo founder sentenced to 10 years in prison|date=June 1, 2006|website=www.atimes.com|publisher=Asia Times Online|access-date=2016-07-06}}</ref> 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."<ref>{{cite news |last=Ramstad |first=Evan |url=https://www.wsj.com/article/SB114896838655866106-search.html?KEYWORDS=daewoo&COLLECTION=wsjie/6month |title=Daewoo Founder Gets Prison Term - WSJ.com |publisher=Online.wsj.com |date=31 May 2006 |access-date=2008-11-20 }}{{Dead link|date=July 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
==Kim's Vision==


=== Breakup and present status ===
Kim Woo Joong was an excellent entrepreneur. He led the company’s growth from an 18,000 initial capital value to $25 billion in annual sales. Some of the solutions he employed to counter problems identified in his company are as follows: 1. He used organizational politics to work with the government. He understood that to gain power, resources, and growth, he needed the protection of the government. 2. Daewoo Group was excellent at turning around faltering companies due to a well-managed, highly centralized organizational structure. Under Kim’s vision, he developed a unique culture in his chaebol known as the Daewoo Spirit. This spirit consists of a commitment to creativity, challenge, and sacrifice. Kim believed in co-prosperity whereby the company provides value to employees, customers, suppliers, partners, and the country as a whole. 3. Daewoo enlarged its capital supply sources by diversifying its method of securing funds, including leasing and deferred payments. They raise funds successfully overseas for large foreign investment projects. 4. Daewoo established a number of joint ventures with U.S. and European companies. Under the vision 2000 campaign, Daewoo established joint-venture production facilities, invested in foreign facilities, established sales and local subsidiaries, and localized component production and other operations. This campaign is aimed at strengthening Daewoo ‘s international competitiveness. 5. After two workers committed suicide, Kim developed a unique program to mend management-labor relations. Manager and company presidents were required to work on the assembly line, and assembly line workers could be promoted to management level. This policy is aimed at improving the management-labor relations as well as help managers understand the difficulties and problems on the assembly line. 6. Daewoo increased their R&D expenditure to be more internationally competitive. To boost this effort, Daewoo established a technology R&D team called the Institute for Advanced Engineering. This team used three strategies in technical development: competitiveness, managerial system development, and the use of technology network.
The group was reorganized into three separate parts: ], ] and ]. 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 "]" and is focused solely on 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. In North America, ] stores market Daewoo Electronics products under their "Trutech" brand on an ] basis.
He also wrote a book on how he brought Daewoo from a 20-man company to an international group in his "The Streets Are Paved With Gold" or in Korean, "The World Is Big And There's Lots To Do"


In 2004, ] pulled the ] brand of vehicles out of Australia and New Zealand, citing irreparable brand damage. Later that same year, GM announced that Daewoo Motors in Europe would be ] as ] on 1 January 2005. In 2005, it was announced that Daewoo cars would have a ] badge in Australia and New Zealand. In South Africa, Thailand, and the Middle East, Daewoo models were already branded Chevrolet. In South Korea, Daewoo was renamed GM Korea.
It is known that he was once a street vendor selling gums and sweets when he was young.


As part of the company reorganization, the content and the structure of its brand portfolio (its brand architecture) was reorganized.<ref>{{cite web |url=http://merriamassociates.com/2010/11/general-motors-a-reorganized-brand-architecture-for-a-reorganized-company/ |title=General Motors: A Reorganized Brand Architecture for a Reorganized Company |publisher=Merriamassociates.com |date=2010-11-22 |access-date=2012-06-23 |url-status=dead |archive-url=https://web.archive.org/web/20120604181905/http://merriamassociates.com/2010/11/general-motors-a-reorganized-brand-architecture-for-a-reorganized-company/ |archive-date=2012-06-04 }}</ref> In 2011, GM discontinued the Daewoo brand name in South Korea and Vietnam and replaced it with the Chevrolet brand.<ref>{{cite web |url=http://www.bernama.com/bernama/v5/newsworld.php?id=567096/ |title=GM Korea Says Goodbye To Daewoo, Hello To Chevrolet |publisher=bernama.com |date=2011-02-28 |access-date=2012-06-23}}</ref> The brand stayed used by GM in various CIS countries where it had a strong presence such as ],<ref>{{cite web|access-date=2023-01-05 |date=2011-08-25 |first=Matt |language=en-US |last=Gasnier |title=Belarus 2010: GAZ Gazelle and Daewoo Matiz dominate |url=https://bestsellingcarsblog.com/2011/08/belarus-2010-gaz-gazelle-and-daewoo-matiz-dominate/ |website=Best Selling Cars Blog}}</ref> ],<ref>{{cite web |access-date=2023-01-05 |date=2013-07-23 |first=Matt |language=en-US |last=Gasnier |title=Tajikistan 2013: Toyota Camry and Daewoo Nexia possible leaders |url=https://bestsellingcarsblog.com/2013/07/tajikistan-2013-toyota-camry-and-daewoo-nexia-possible-leaders/ |website=Best Selling Cars Blog}}</ref> ],<ref>{{cite web |access-date=2023-01-05 |date=2014-04-23 |first=Matt |language=en-US |last=Gasnier |title=Moldova March 2014: Daewoo Matiz up to 2nd place |url=https://bestsellingcarsblog.com/2014/04/moldova-march-2014-daewoo-matiz-up-to-2nd-place/ |website=Best Selling Cars Blog}}<!-- auto-translated by Module:CS1 translator --></ref> ]<ref>{{cite web |access-date=2023-01-05 |date=2013-07-15 |first=Matt |language=en-US |last=Gasnier |title=Kazakhstan June 2013: Lada Priora #1, Daewoo Nexia on podium|url=https://bestsellingcarsblog.com/2013/07/kazakhstan-june-2013-lada-priora-leads-daewoo-nexia-on-podium/ |website=Best Selling Cars Blog}}<!-- auto-translated by Module:CS1 translator --></ref> and ]<ref>{{cite web |access-date=2023-01-05 |date=2015-11-21 |first=Matt |language=en-US |last=Gasnier |title=Uzbekistan 2015: Change of guard from UZ-Daewoo Nexia to Gentra?|url=https://bestsellingcarsblog.com/2015/11/uzbekistan-2015-change-of-guard-from-uz-daewoo-nexia-to-gentra/ |website=Best Selling Cars Blog}}<!-- auto-translated by Module:CS1 translator --></ref> until the mid-2010s. It was progressively phased out and replaced by Chevrolet or ].
==Corporations==


The Daewoo commercial vehicle manufacturer was taken over by ].<ref name="Tata press" />
Daewoo Group, as was the official name, had under its umbrella, major corporations, Daewoo Electronics, a strong force both internationally and in Korea, Daewoo Heavy Industries, excelling in creating heavy duty machinery, and Daewoo Ship Building, under Heavy Industries boasted and still boasts one of the highest level of production of containers and oil tankers in the world today. Daewoo Securities, a financial securities company, Daewoo Telecom, concentrating on the telecommunication aspect of the electronics, Daewoo Construction, an international company, famous for building highways, dams and skyscrapers for countries especially in the mid-east and Africa. Daewoo International, a successful trading organisation, now still in operation. There were about 20 divisions under Daewoo Group, which now no longer exists. Daewoo Group was once the second largest conglomerate after ] and followed by ] and ] in Korea before the crisis.


=== Involvement in Myanmar ===
==Crisis History==
Daewoo also moved into the oil and gas industry. While Western oil and gas companies were unwilling to conduct business in ],<ref>{{cite web|url=http://www.upstreamonline.com/live/article157719.ece |title=Daewoo to tap Burma gas for China - Upstreamonline |publisher=Upstreamonline.com |access-date=2008-11-20}}</ref> Daewoo is one of three oil companies, along with the French company ] and the American company ],<ref>{{cite web |url=http://www.nickyblack.com/Nicky_Black/Corporate_Citizenship_and_Myanmar_files/BM%20Chp%207%20-%20Myr%20O%26G%20industry.pdf |title=Blood Money - Chapter 7, Corporate Citizenship and the Oil and Gas Sector in Myanmar (Burma) |publisher=nickyblack.com |access-date=9 October 2010 |archive-date=27 January 2018 |archive-url=https://web.archive.org/web/20180127202849/http://nickyblack.com/Nicky_Black/Corporate_Citizenship_and_Myanmar_files/BM%20Chp%207%20-%20Myr%20O%26G%20industry.pdf |url-status=dead }}</ref> ]. During explorations in 2008, Daewoo found one of the largest gas fields in ], the Shwe offshore field, in the ], about 100&nbsp;km off ].<ref name=Shwe>{{cite news |url=https://www.offshore-technology.com/projects/shwe-natural-gas-project/ |title=Shwe Natural Gas Project |author=OT staff writers |work=Offshore Technology |publisher=Verdict Media Limited |date=2019 |access-date=2019-02-13}}</ref> The field went into production in 2013.<ref name=Shwe/>


== Corporations ==
Daewoo Group ran into deep financial trouble in ] due to the ] and the defunct Korean government under President Kim Dae Jung. The government could not keep their own defecits down to a respectable level, so had to push companies like Daewoo off the chart. This ended with the ultimate destruction and dismantling of the Daewoo Group without much opposition. Chairman, Kim Woo Jung was exiled in silent force overseas and was named fugitive after he did not return. Kim was promised by President that he would have Daewoo returned and restored if he left the country with Daewoo under the auspices of the government. Much to Chairman Kim's dismay, the creditors and the government did not carry out their promise, and managed to disintegrate the second largest conglomerate in South Korea, a hugely international company based around near 100 countries to an appalling halt.
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|image2 = DAEWOO Wheel Loader.jpg
|caption2 = A wheel-loader produced by Daewoo Heavy Industries
|image3 = SeoulMetro-C3000-UnrefubGangway.JPG
|caption3 = A Seoul metropolitan car (Seoul Metro Class 3000), produced by DHI in 1984
|footer =
}}
Daewoo Group had under its umbrella several major corporations:
]
]
* ], a strong force both internationally and in South Korea (sub-branch Daewoo Electronic Components Co. Ltd, Daewoo Electric Motor Industries Ltd., Orion Electric Co. Ltd.)
* Daewoo Electronic Components manufactures and sells a variety of electronic parts and components, especially for automobile, televisions, monitors, ] and other multimedia products.<ref>{{Cite web|title=009320:Korea SE Stock Quote - Daewoo Electronic Components Co Ltd|url=https://www.bloomberg.com/quote/009320:KS|access-date=2020-09-08|website=Bloomberg.com|language=en}}</ref>
* ], the motor vehicles division (sub-branch Daewoo Automotive Components Co. Ltd., Daewoo Bus Co., Ltd., Daewoo Commercial Vehicle Co. Ltd.)
* ], an auto sales company sold Daewoo but also GM cars and others in South Korea (Sub-branch: Architectural Iaan Div., SAA-Seoul Auto Auction)
* ], is a manufacturer of buses. headquartered in Busan, South Korea, established in 2002. These buses are primarily used for public transportation
* Daewoo Precision Industries produced small calibre firearms, auto parts and pianos. It was spun off in February 2002 and relisted on the South Korean stock-market in March 2002. It was renamed S&T Daewoo Co., Ltd in September 2006,<ref>{{cite web
|url=http://www.sntdaewoo.com/st/company04.html
|title=Company History
|publisher=S&T Daewoo
|access-date=2011-08-09
|url-status=dead
|archive-url=https://web.archive.org/web/20110828225429/http://www.sntdaewoo.com/st/company04.html
|archive-date=2011-08-28
}}</ref> and then ] Co., LTD in March 2012.<ref>{{cite web|url=http://www.sntdaewoo.com/template/html/company/S%26Tdaewoo.pdf
|archive-url=https://www.webcitation.org/689U9cavl?url=http://www.sntdaewoo.com/template/html/company/S%26Tdaewoo.pdf
|url-status=dead
|archive-date=2012-06-03
|title=Official S&T Motiv Co., Ltd. brochure, page 5|access-date=2012-06-03}}</ref>
*Daewoo Textile Co. Ltd.
* ] (DHI), which created heavy duty machinery
* ]
* ] produced container ships, oil tankers and planes. It spun off in 2000 and became an independent company, DSME, re-listing on the South Korean stock-market in 2001
* ], 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
* ], a trading organization
* Daewoo Development Co. Ltd., managing Daewoo hotels around the world and had the ] 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 South Korea, China, Vietnam, and Africa. They were personally designed and furnished by Kim Woo-jung's socialite wife Heeja, who was chairwoman of the company. The most lavish is the 5-star Hanoi Daewoo Hotel, which cost ]163 million to build in 1996 and was decorated by Heeja with fine art, porcelain, sculptures, and marble. She invited 3,000 guests to the opening, including Russian President ]. Kim is believed to have spent time there while "on the run".<ref name="WWN">{{cite book|last=Meredith|first=Richard|title=Which way next?|publisher=Mercury Books|location=|isbn=978-0954143237|edition=Revised|date=January 3, 2004}}</ref>
The main argument for as to why Daewoo was completely liquidated was to the fact that at the time, Presiden Kim Dae Jung was appeasing the North Korean government with financial aid and other materials. He expected the leaders of the Top 5 conglomerates to cooperate in his government's "Sunshine Policy", when Chaiman Kim Woo Joong did not agree with the massive "no return on investment seen ahead" investment, he refused to cooperate with the President. Chairman Kim was in fact one of the pioneers in setting up new ways of doing business with the North, one of the few who understood the Northern way of business. He insisted on a gave'n take policy which the President did not yield to. To this "audacious" response the Korean government under Kim literally destroyed Daewoo instead of helping the group in a time of financial turmoil. The company who was used and exploited for the "North Expedition" was in fact ]. It was during this time they started to start massive North Korean investments, and the famous "Cow Shipping" that enabled around 1000 cows to be sent over to the North for whatever reasons. Hyundai was destroyed financially due to this, but the government due to its policy on loyal companies did not sabotage it.


===Daewoo Motor Co., Ltd.===
]
{{main|Daewoo Motors|Daewoo Motor Sales|GM Korea}}
]' 1997 ]]]
] was founded when the Daewoo Group purchased ] in 1978, but the Daewoo Motor name did not appear until 1983.


The Daewoo Motor brand appeared in the ] in 1995. At the time, it was the only manufacturer not using traditional dealerships&nbsp;– it owned and operated its own retail network. It was once considered to be among the top 10 motor companies in terms of production.{{Citation needed|date=October 2012|reason=By who? Top 10 in UK or what?}}
Chairman Kim Woo Joong was sent overseas in exile terms at first, then the government released information on how he had in fact "fled" the country from possible prosecution. This of course was completely a backlog of a twisted powerplay going on the Korean government, when in fact, it was the President who advised Kim to stay out of the country for a few months. Ulterior motive: revenge on a company that was not supportive to his policies.


Due to financial trouble, Daewoo's automotive arm, Daewoo Motors, was sold to ] (Korean) in 2001. The Daewoo nameplate continued in ] and ] until 2011. The former Daewoo facilities are now producing General Motors vehicles for Asian markets.
==Daewoo Motors==


Daewoo Commercial Vehicles Division was sold to ].<ref name="Tata press">{{Cite press release|url=http://www.tata.com/article/inside/g!$$$!uQcBt5PoY=/TLYVr3YPkMU=|title=Tata Motors completes acquisition of Daewoo Commercial Vehicle Company|date=March 29, 2004|website=www.tata.com|access-date=2016-07-06|archive-url=https://web.archive.org/web/20161029051628/http://www.tata.com/article/inside/g!$$$!uQcBt5PoY=/TLYVr3YPkMU=|archive-date=October 29, 2016|url-status=dead}}</ref>
Daewoo Motors arrived in the ] in ], as the only - at the time - manufacturer not using traditional dealerships: it owned and operated its own retail network. It was once considered to be nearing the top 10 motor companies in production.


== The Daewoo brand today ==
Daewoo was forced to sell off its automotive arm ] to ] by the Kim administration. Since then, GM has been moving to ] Daewoo cars as the low-end models for many brands, including ]. GM was sued by Daewoo's former US dealer network over this practice, since they no longer have new Daewoo cars to sell.
As of September 2022, companies that remain with the "Daewoo" brand name are:

* ] – Specializing in construction
==Current Status==
* ] – Inter-city ] of passengers by bus serving over 60 destinations in Pakistan.

* ] – Specializing in commercial vehicles, wholly owned by ] of India
Daewoo Electronics survives to this day despite bankruptcy, with a new brand logo "DE", but much of the other many subsidiaries and divisions have all departed and became independent or simply perished under the brutal "reorganisation" of the Korean government under Kim Dae Jung.
* ] – Specializing in buses

The group was reorganized into three big parts: '']'', '']'' and '']''. It is active in many markets; the most important are steel processing, ship building and financial.

]

In early ], ] pulled out of ], citing irreparable brand damage, and later that year, from ]. Later the same year, GM announced that Daewoo Motors in ] would change its name to ] as of 1st January 2005. In ], ] and the ], Daewoo models were already being sold as Chevrolets. Only in ] and ] would the Daewoo marque survive.

Back in 1980s and early 1990s, Daewoo brand also produced consumer electronics, computers, ] products, construction equipment, buildings, ships and musical instruments (]).


==See also== ==See also==
{{Portal|South Korea|Companies}}
* ]
*]
*]
*]


==External links== ==References==
{{reflist}}
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== External links ==
==References==
{{Commons category}}
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* {{official|https://web.archive.org/web/19990208003956/http://daewoo.com/}} (archived, 2 Feb 1999)
*


] {{Daewoo Group}}
{{Authority control}}
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Latest revision as of 02:30, 17 December 2024

Defunct South Korean conglomerate For the division, see Daewoo Electronics. For the current incarnation of the company, see GM Korea. For other uses, see Daewoo (disambiguation).

Daewoo
Former Daewoo Group headquarters in 1995
Company typeChaebol
Founded22 March 1967; 57 years ago (1967-03-22)
FounderKim Woo-choong
Defunct1 November 1999; 25 years ago (1999-11-01)
FateDeclared bankruptcy (see details)
HeadquartersSeoul, South Korea
Number of employees320,000
Divisions List
Subsidiaries
Korean name
Hangul대우
Hanja大宇
Revised RomanizationDaeu
McCune–ReischauerTaeu

Daewoo (UK: /ˈdeɪ.uː/ DAY-oo; US: /ˌdeɪˈwuː/ day-WOO; Korean: 대우; Hanja: 大宇; IPA: [tɛ.u]; literally "great universe" and a portmanteau of "dae" meaning great, and the given name of founder and chairman Kim Woo-choong) also known as the Daewoo Group, was a major South Korean chaebol (type of conglomerate) and automobile manufacturer.

It was founded on 22 March 1967 as Daewoo Industrial and was declared bankrupt on 1 November 1999, with debts of about US$50 billion (equivalent to $91 billion in 2023). Prior to the 1997 Asian financial crisis, Daewoo was the second largest conglomerate in South Korea after the Hyundai Group and behind Lucky-Goldstar (later became LG Corporation). There were about 20 divisions under the Daewoo Group, some of which survived as independent companies.

History

Beginning and development

The Daewoo Group was founded by Kim Woo-choong in March 1967. He was the son of the Provincial Governor of Daegu. He graduated from the Kyonggi High School, then finished with an Economics Degree at Yonsei University in Seoul.

During the 1960s, after the end of the Syngman Rhee 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 because of South Korea's large and relatively inexpensive 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 South Korea's competitive edge. The government responded to this change by concentrating its efforts 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 its economic policies. Small private companies were encouraged, protectionist import restrictions were loosened, and the government reduced positive discrimination (affirmative action), 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 South Korea.

In the 1980s and early 1990s, the Daewoo Group also produced consumer electronics, computers, telecommunications products, construction equipment, buildings, and musical instruments.

Crisis and collapse

Main article: Daewoo dissolution and corruption scandal

Daewoo Group ran into deep financial trouble in 1998 due to the 1997 Asian financial crisis, increasingly precarious relationships with the Korean government under President Kim Dae-jung, and its own poor financial management. With the Korean government in deficit, access to cheap and nearly unlimited credit was severely restricted.

In 1998, due to the impact of the foreign exchange crisis ln the end, after Daewoo group went bankrupt, dissolution subsidiaries, in a year where the group lost a total of ₩550 billion (equivalent to ₩876.34 billion or US$775.23 million in 2017) on sales of ₩62 trillion (equivalent to ₩98.79 trillion or US$87.39 billion in 2017). At the end of 1997, South Korea's fourth-largest chaebol had a debt of nearly five times their equity. While Samsung and LG 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 US$50 billion (equivalent to $91 billion in 2023).

Soon after the demise, Kim Woo-choong fled to Vietnam, and former Daewoo factory workers put up wanted posters with his picture. Kim returned to Korea in June 2005 and was promptly arrested. He was charged with masterminding accounting fraud of 41 trillion won (US$43.4 billion), illegally borrowing 9.8 trillion won (US$10.3 billion), and smuggling US$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."

Breakup and present status

The group was reorganized into three separate parts: Daewoo Corporation, 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" and is focused solely on 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. In North America, Target stores market Daewoo Electronics products under their "Trutech" brand on an ODM basis.

In 2004, General Motors pulled the Daewoo brand of vehicles out of Australia and New Zealand, citing irreparable brand damage. Later that same year, GM announced that Daewoo Motors in Europe would be rebadged as Chevrolet on 1 January 2005. In 2005, it was announced that Daewoo cars would have a Holden badge in Australia and New Zealand. In South Africa, Thailand, and the Middle East, Daewoo models were already branded Chevrolet. In South Korea, Daewoo was renamed GM Korea.

As part of the company reorganization, the content and the structure of its brand portfolio (its brand architecture) was reorganized. In 2011, GM discontinued the Daewoo brand name in South Korea and Vietnam and replaced it with the Chevrolet brand. The brand stayed used by GM in various CIS countries where it had a strong presence such as Belarus, Tajikistan, Moldova, Kazakhstan and Uzbekistan until the mid-2010s. It was progressively phased out and replaced by Chevrolet or Ravon.

The Daewoo commercial vehicle manufacturer was taken over by Tata Motors.

Involvement in Myanmar

Daewoo also moved into the oil and gas industry. While Western oil and gas companies were unwilling to conduct business in Myanmar, Daewoo is one of three oil companies, along with the French company TotalEnergies and the American company Unocal, operating in the country. During explorations in 2008, Daewoo found one of the largest gas fields in southeast Asia, the Shwe offshore field, in the Bay of Bengal, about 100 km off Sittwe. The field went into production in 2013.

Corporations

A wheel-loader produced by Daewoo Heavy IndustriesA Seoul metropolitan car (Seoul Metro Class 3000), produced by DHI in 1984

Daewoo Group had under its umbrella several major corporations:

The That-El-Emad towers built by Daewoo Corporations Construction Div. in Tripoli, Libya
The 'Iran Sadr' ship, built by Daewoo Shipbuilding & Marine Engineering in 1985
  • Daewoo Electronics, a strong force both internationally and in South Korea (sub-branch Daewoo Electronic Components Co. Ltd, Daewoo Electric Motor Industries Ltd., Orion Electric Co. Ltd.)
  • Daewoo Electronic Components manufactures and sells a variety of electronic parts and components, especially for automobile, televisions, monitors, VHS Players and other multimedia products.
  • Daewoo Motors, the motor vehicles division (sub-branch Daewoo Automotive Components Co. Ltd., Daewoo Bus Co., Ltd., Daewoo Commercial Vehicle Co. Ltd.)
  • Daewoo Motor Sales, an auto sales company sold Daewoo but also GM cars and others in South Korea (Sub-branch: Architectural Iaan Div., SAA-Seoul Auto Auction)
  • Daewoo Bus, is a manufacturer of buses. headquartered in Busan, South Korea, established in 2002. These buses are primarily used for public transportation
  • Daewoo Precision Industries produced small calibre firearms, auto parts and pianos. It was spun off in February 2002 and relisted on the South Korean stock-market in March 2002. It was renamed S&T Daewoo Co., Ltd in September 2006, and then S&T Motiv Co., LTD in March 2012.
  • Daewoo Textile Co. Ltd.
  • Daewoo Heavy Industries (DHI), which created heavy duty machinery
  • Daewoo E&C
  • Daewoo Shipbuilding & Marine Engineering produced container ships, oil tankers and planes. It spun off in 2000 and became an independent company, DSME, re-listing on the South Korean stock-market in 2001
  • Daewoo Securities, 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 Millennium Seoul Hilton 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 South Korea, China, Vietnam, and Africa. They were personally designed and furnished by Kim Woo-jung's socialite wife Heeja, who was chairwoman of the company. The most lavish is the 5-star Hanoi Daewoo Hotel, which cost US$163 million to build in 1996 and was decorated by Heeja with fine art, porcelain, sculptures, and marble. She invited 3,000 guests to the opening, including Russian President Vladimir Putin. Kim is believed to have spent time there while "on the run".

Daewoo Motor Co., Ltd.

Main articles: Daewoo Motors, Daewoo Motor Sales, and GM Korea
Daewoo Motors' 1997 Leganza

Daewoo Motor Co., Ltd. was founded when the Daewoo Group purchased Saehan Motor in 1978, but the Daewoo Motor name did not appear until 1983.

The Daewoo Motor brand appeared in the UK 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 among the top 10 motor companies in terms of production.

Due to financial trouble, Daewoo's automotive arm, Daewoo Motors, was sold to General Motors (Korean) in 2001. The Daewoo nameplate continued in South Korea and Vietnam until 2011. The former Daewoo facilities are now producing General Motors vehicles for Asian markets.

Daewoo Commercial Vehicles Division was sold to Tata Motors.

The Daewoo brand today

As of September 2022, companies that remain with the "Daewoo" brand name are:

See also

References

  1. and his life in exile.
  2. Daewoo boss gets 10 years in jail - BBC NEWS
  3. Jacobs, A. J. (19 June 2017). Automotive FDI in Emerging Europe: Shifting Locales in the Motor Vehicle Industry. Springer. ISBN 978-1-137-40786-3.
  4. ^ 1906 to 1911: Williamson J. (1999), Nominal Wage, Cost of Living, Real Wage and Land Rent Data for Korea 1906-1939 1912 to 1939: Mizoguchi, T. (1972). Consumer Prices and Real Wages in Taiwan and Korea Under Japanese Rule. Hitotsubashi Journal of Economics, 13(1), 40-56. Retrieved May 21, 2021. Afterwards, consumer price index from Statistics Korea. Consumer Price Index by year. Retrieved 3 April 2018
  5. ^ "South Korea: The death of Daewoo". The Economist. 19 August 1999. Retrieved 13 October 2015.
  6. "Daewoo founder Kim gets 10-yr term". CNN. 30 May 2006. Archived from the original on 8 April 2008. Retrieved 20 November 2008.
  7. "Daewoo founder sentenced to 10 years in prison". www.atimes.com. Asia Times Online. 1 June 2006. Archived from the original on 1 September 2006. Retrieved 6 July 2016.
  8. Ramstad, Evan (31 May 2006). "Daewoo Founder Gets Prison Term - WSJ.com". Online.wsj.com. Retrieved 20 November 2008.
  9. "General Motors: A Reorganized Brand Architecture for a Reorganized Company". Merriamassociates.com. 22 November 2010. Archived from the original on 4 June 2012. Retrieved 23 June 2012.
  10. "GM Korea Says Goodbye To Daewoo, Hello To Chevrolet". bernama.com. 28 February 2011. Retrieved 23 June 2012.
  11. Gasnier, Matt (25 August 2011). "Belarus 2010: GAZ Gazelle and Daewoo Matiz dominate". Best Selling Cars Blog. Retrieved 5 January 2023.
  12. Gasnier, Matt (23 July 2013). "Tajikistan 2013: Toyota Camry and Daewoo Nexia possible leaders". Best Selling Cars Blog. Retrieved 5 January 2023.
  13. Gasnier, Matt (23 April 2014). "Moldova March 2014: Daewoo Matiz up to 2nd place". Best Selling Cars Blog. Retrieved 5 January 2023.
  14. Gasnier, Matt (15 July 2013). "Kazakhstan June 2013: Lada Priora #1, Daewoo Nexia on podium". Best Selling Cars Blog. Retrieved 5 January 2023.
  15. Gasnier, Matt (21 November 2015). "Uzbekistan 2015: Change of guard from UZ-Daewoo Nexia to Gentra?". Best Selling Cars Blog. Retrieved 5 January 2023.
  16. ^ "Tata Motors completes acquisition of Daewoo Commercial Vehicle Company". www.tata.com (Press release). 29 March 2004. Archived from the original on 29 October 2016. Retrieved 6 July 2016.
  17. "Daewoo to tap Burma gas for China - Upstreamonline". Upstreamonline.com. Retrieved 20 November 2008.
  18. "Blood Money - Chapter 7, Corporate Citizenship and the Oil and Gas Sector in Myanmar (Burma)" (PDF). nickyblack.com. Archived from the original (PDF) on 27 January 2018. Retrieved 9 October 2010.
  19. ^ OT staff writers (2019). "Shwe Natural Gas Project". Offshore Technology. Verdict Media Limited. Retrieved 13 February 2019.
  20. "009320:Korea SE Stock Quote - Daewoo Electronic Components Co Ltd". Bloomberg.com. Retrieved 8 September 2020.
  21. "Company History". S&T Daewoo. Archived from the original on 28 August 2011. Retrieved 9 August 2011.
  22. "Official S&T Motiv Co., Ltd. brochure, page 5" (PDF). Archived from the original (PDF) on 3 June 2012. Retrieved 3 June 2012.
  23. Meredith, Richard (3 January 2004). Which way next? (Revised ed.). : Mercury Books. ISBN 978-0954143237.

External links

Daewoo (1967–1999)
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Subsidiaries
Successors
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