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.............................. Daewoo
Logo and Trademark..............................
Daewoo (Korean for "Great Universe") was a major South Korean chaebol (conglomerate). It was founded in March 22, 1967 as Daewoo Industrial and was dismantled by the Korean government in 1999. On May 30, 2006 the founder of Daewoo, Kim Woo-jung, was sentenced by a court in Seoul to a fine of approximately 21 trillion won ($22bn USD) and 8 1/2 years in prison on charges including fraud and embezzlement. 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 stores market Daewoo Electronics products under their "Trutech" brand on an ODM basis.
The group was reorganized into three parts: Daewoo International, Daewoo Engineering & Construction and Daewoo Corporation. It is active in many markets; the most important are steel processing, ship building and financial services. 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 change its name to Chevrolet as of January 1, 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 being sold as Chevrolets. Only in South Korea and Vietnam does the Daewoo marque survive. The Daewoo commercial vehicle manufacturer was bought over by Tata Motors - world's 5th largest medium and heavy commercial vehicle manufacturer.
Daewoo is also moving into the oil & gas industry. While many oil & gas companies decline to conduct business in Burma on account of the abysmal human rights record of the ruling military junta, Daewoo is one of two (the other the French company Total) which has undertaken exploration in the country. During explorations Daewoo found one of the largest gas fields in SE Asia located in Blocks A1 and A3 about 100km off Sittwe in Rakhine State, which they will likely put into production within the next 5 years, thereby providing a lucrative (and probably the largest) source of hard currency finance for the ruling junta. It is unclear whether the link between Daewoo and the oppressive military regime in Burma, responsible for recent bloody crackdown of peaceful monk-led anti-government protesters in September and October 2007, will further hurt the reputation of the company. However, Daewoo has long been known as one of the largest foreign investors in the country.
Apart from involvement in the Burmese oil & gas industry, the Daewoo International President Lee Tae-yong, has been indicted in South Korea for allegedly illegally selling military hardware to the junta. Kim Woo-jung was the son of the Provincial Governor of Daegu. He graduated from the prestigious Kyonggi High School, then finished with an Economics Degree in Yonsei University in Seoul. Kim Woo-jung founded the Daewoo Group in March 1967. 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 shipbuildings. 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, 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 (Daewoo Piano).
Daewoo Motors 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 Motors, to General Motors by the Kim administration. Since then, GM has been moving to rebadge Daewoo cars as the low-end models for many brands, including Chevrolet. GM was sued by Daewoo's former U.S. dealer network over this practice, since they no longer had new Daewoo cars to sell. Daewoo commercial vehicles division was sold to Tata Motors of India.
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