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A D V E R T I g E M E N T
C
DAEWOO GROLIP
Working Hard to Become a Trulv
Global Enterprise
he Daewoo Group, South
Korea's third-largest <strong>business</strong> conglomerate
in terms of assets <strong>and</strong> .ourth-largest in
terms of sales, is in the micist of a campaign
to become a truly global enterprise by the
start of rhe new ceno,rry. Its VISION 2000
strategy I•.;u set an ambitious goal of attaining
total sales of $134 billion bv the year
2000, a threefold increase in six years .
The sales target total consists of $36 billion
from trading, $28 billion from electronics
<strong>and</strong> telecommunications, $26 billion
from motor vehicles, $18 billion from
machinery <strong>and</strong> shipbuilding, $17 billion
from construction, $7 billion from financial
services <strong>and</strong>, lastly, $2 billion from hotels .
To achieve this target, Daewoo is pushing
rapidly to have a worldwide network of
650 offices <strong>and</strong> plants in more than 160
countries around the world-including 430
sales subsidiaries, 130 manufacturing subsidiaries,
20 technical <strong>and</strong> design R&D centers
<strong>and</strong> .'0 local branch of}ices,
To foster competitiveness <strong>and</strong> efficiency,
Daewoo founder <strong>and</strong> Chairmarr Kim Woo-
Choong, 58, who has overseen managerial
operations at all 21 principal group companies,
carried our a sweeping managerial
reform itr February-
Under the reform, Kim will focus his
managerial role mainly on automotive manufacturing
<strong>and</strong> sales, while ten new chairmen
will have full managerial responsibilities
for major companies including Daewoo
Corporation, Daewoo Electronics Co . Ltd.,
Daewoo Heavy Industries Ltd . <strong>and</strong> Daewoo
Telecom Ltd .
Chairman Kim says : "?unund ehe
world, national economic policies <strong>and</strong> international
accords such as the new GATT
agreement are stimulating trade as never
before. A genuinely global economy is
emerging, <strong>and</strong> this means exceptional
opportunities for ail the companies of the
Daewoo Group .°
Daewoo is Koreis-<strong>and</strong> perhaps the
wodd's-fastest-growing wmpany .
Daewoo has grown rapidly at an annual
average race of 30°'0 . Last year, Daewoo's
total sales
grew an
impressive
29 .5% to
$40 billion .
Daewoo,
which means
"Great
Universe" in
Korean, sr.rted in
1967 as a garmenr
exporting firm with five
employees . It has grown to
become one of rhe worlds largest enrer
prises, with more than 100,000 employees
worldwide engaged in trading, constmction
<strong>and</strong> shipbuilding, <strong>and</strong> in the manufacture
of motor vehicles, heaty equipment,
machine tools, home appliances, electronics
products, computers <strong>and</strong> telecommunications
equipment . It also runs hotels <strong>and</strong> is
a provider of financial services .
Chairman Kim is particularly determined
to push his automobile <strong>and</strong> electronics
subsidiaries into positions as world leaders
in this era of fierce competition .
Daewoo Motor Co, Ltd., managed independendy
since ending a 14-year joint venture
with General Ivfotors in 1992, recorded
sales of $3 .53 billion last year. It produced
332,429 passenger cars (models with 1 .5-
liter to 3 .2-Gter engines), 3,895 heavy trucks
<strong>and</strong> 4,265 large buses . In addition, Daewoo
Heavy Industries Lcd . built 72,484 minicars,
vans <strong>and</strong> trucks (powered by 800cc engines) .
About one-fourth of rotal auto production
was exported to 130 countries .
Daewoo is to build a new plant at
Kunsan, southwest of Seotd, which will
have an annuai production capacity of
300,000 passenger cars <strong>and</strong> 200,000 commercial
vehicles . Partial ooeration will
begin toward the end of this year. Dacwoo
is also constructing overseas production
bases in Uzbekiscan (200,000 units),
Romania (200,000 units) <strong>and</strong> other plants
in Iran, India, the Philippines, Vietnam,
Indonesia <strong>and</strong> China to reach a total production
capacity of two million units annu-
g?obal
eCor'r
omy is
"A genuinely
emerging,
<strong>and</strong>
this means
exceptionai opportunities
T'or all the companies o& the
Daewoo Group ."
ally, half overseas, by the year 2000 . This
would place Daewoo among the world's top
ten automakes .
To globalize its technology <strong>and</strong> R&D,
Daewoo Motor has exp<strong>and</strong>ed its automorive
technical center in Pupyong, near
Seoul, into a general research complex, <strong>and</strong>
has established overseas R&D facilities for
cars in Britain <strong>and</strong> Germanv. To achieve its
ambitious goals for the automotive <strong>business</strong>,
Daewoo plans to invest,S1I billion over the
next five years .
Daewoo is equally ambitious in the electronics
<strong>business</strong>, as it plans to invest a total
of $3 .9 billion by the year 2000 to become
one of the world's largest manufacturers of
consumer electronics products <strong>and</strong> home
appliances with anticipated annual sales of
$10 billion.
Daewoo's aim is to capture 10°/n to 20%
of world market share by the vear 2000 in
its six core product areas : televisions, VCRs,
refrigerators, washing machines, microwave
ovens <strong>and</strong> color computer monitors . With
expansion into new <strong>business</strong> areas, Daewoo
Flectronics forecasts that it will become one
of the world's top five electronics manufacturers
with total annual sales of $50 billion
by dte year 2010 .
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