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The That-El-Emad towers built by Daewoo Corporations Construction Div. in Tripoli, LibyaThere were about 20 divisions in the Daewoo Group, which before the crisis was the second largest conglomerate in Korea after Hyundai Group, followed by LG Group and Samsung Group.
Daewoo Group had under its umbrella several major corporations:
Daewoo Bus Corporation, is a manufacturer of buses. headquartered in Busan, South Korea, established in 2002. These buses are primarily used for public transportation
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, 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, 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 Co., Ltd in September 2006[1]
Daewoo Textile Co. Ltd.
Daewoo Heavy Industries (DHI), which created heavy duty machinery
A wheel-loader produced by Daewoo Heavy Industries
A Seoul metropolitan car (Seoul Metro Class 3000), by DHI, 1984Daewoo 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 Korean stockmarket 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 Hilton Hotels 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$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".
http://upload.wikimedia.org/wikipedia/commons/1/12/Tripoli_Central_Business_District.jpg
Daewoo Motor Co.,Ltd.For specific GM Daewoo and Daewoo cars history and details, see GM Korea.
Daewoo Motor's 1997 Leganza
The 'Iran Sadr' ship, built by DSME in 1985Daewoo Motor Co., Ltd. was founded when the Daewoo Group purchased Saehan Motor in 1978, but the Daewoo Motor name appeared only in 1983.
Daewoo Motor arrived 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 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, Buick, Pontiac, Holden, and Suzuki. The GM Daewoo nameplate was kept only for South Korea and Vietnam until 2011.
Daewoo Commercial Vehicles Division was sold to Tata Motors of India.
See Full Picture http://upload.wikimedia.org/wikipedia/commons/a/a5/1999_Daewoo_Leganza.jpg
History
The Daewoo Group was founded by Kim Woo-jung 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. It became one of the Big Four chaebol 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 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 products, construction equipment, buildings, and musical instruments
Crisis and collapseDaewoo 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, 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 and LG cut back in the midst of the economic crisis, Daewoo took on 40% more debt."[3]
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.[4] 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."
The That-El-Emad towers built by Daewoo Corporations Construction Div. in Tripoli, LibyaThere were about 20 divisions in the Daewoo Group, which before the crisis was the second largest conglomerate in Korea after Hyundai Group, followed by LG Group and Samsung Group.
Daewoo Group had under its umbrella several major corporations:
Daewoo Bus Corporation, is a manufacturer of buses. headquartered in Busan, South Korea, established in 2002. These buses are primarily used for public transportation
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, 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, 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 Co., Ltd in September 2006[1]
Daewoo Textile Co. Ltd.
Daewoo Heavy Industries (DHI), which created heavy duty machinery
A wheel-loader produced by Daewoo Heavy Industries
A Seoul metropolitan car (Seoul Metro Class 3000), by DHI, 1984Daewoo 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 Korean stockmarket 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 Hilton Hotels 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$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".
http://upload.wikimedia.org/wikipedia/commons/1/12/Tripoli_Central_Business_District.jpg
Daewoo Motor Co.,Ltd.For specific GM Daewoo and Daewoo cars history and details, see GM Korea.
Daewoo Motor's 1997 Leganza
The 'Iran Sadr' ship, built by DSME in 1985Daewoo Motor Co., Ltd. was founded when the Daewoo Group purchased Saehan Motor in 1978, but the Daewoo Motor name appeared only in 1983.
Daewoo Motor arrived 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 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, Buick, Pontiac, Holden, and Suzuki. The GM Daewoo nameplate was kept only for South Korea and Vietnam until 2011.
Daewoo Commercial Vehicles Division was sold to Tata Motors of India.
See Full Picture http://upload.wikimedia.org/wikipedia/commons/a/a5/1999_Daewoo_Leganza.jpg
History
The Daewoo Group was founded by Kim Woo-jung 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. It became one of the Big Four chaebol 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 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 products, construction equipment, buildings, and musical instruments
Crisis and collapseDaewoo 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, 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 and LG cut back in the midst of the economic crisis, Daewoo took on 40% more debt."[3]
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.[4] 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."
