Sunday, April 6, 2014
Introduction and History
Daewoo Corporation is a Korean company, which has their broad network all over the world including U.S.A, U.K, and many other countries having a long chain of their offices and services. Daewoo Group was founded by Kim Woo Chuffing in March 1967. Daewoo's emergencewas inseparable from South Korea's rapid transformation from an agrarian country,racked by a long history of hostile invasions and lacking essential resources, to a land where the centrally planned "economic miracle" has become a fact of life. South Korea entered the 1960s with a crippling trade deficit and a domestic market too poor to support indigenous industries. When Korea was divided by the Allies after World War II, the territory north of the 38th parallel inherited all of the country's natural resources. With afar stronger military force than its rivals in the South, North Korea waited less than two years after the withdrawal of U.S. peacekeeping troops to invade. Peace was eventually restored in 1953, but the fear of foreign invasion has remained with the South Koreans and, indeed, has acted as a powerful incentive in the search for economic prosperity. Daewoo means "Great Universe," and although the initial share capital of the company was a modest $18,000, Kim and his colleagues held great hopes for their business. At its peak, Daewoo was South Korea's fourth largest conglomerate, or chaebol, with principal operations in trading, motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications, and financial services. The company was comprised of 25 subsidiaries, linked together in a complicated system of cross holdings. The major company in the group was Daewoo Corporation, which was licensed as a general trading company (GTC) by the Korean government in 1975. GTCs were set up to promote exports, and license holders were required to establish offices abroad. Daewoo had a network of over 100 branches worldwide, with some 3,500 different products traded in over 130 countries. In exchange for promoting Korean goods abroad, the Daewoo Corporation was able to finance its expansion through preferential loan agreements, reduced foreign exchange requirements, and improved government advice on exporting and marketing abroad. However, Kim Woo Choong's global ambitions eventually overextended the company's resources, and by the late 1990s Daewoo was deep in debt, while Kim himself was being indicted on charges of corporate malfeasance. In 1999 the South Korean government issued an order to dismantle the chaebol, and the majority of the Daewoo Group's holdings were sold to other corporations. Daewoo in Pakistan: As Daewoo has a name all over the world due to interest in automobiles, consumer goods, financial and securities, construction, engineering and trade sector, Daewoo is working for the last thirty years and their motto is “from tile till ship”. Daewoo, a top Korean company, emerged in Pakistan in 1993, when it sorts $1 billion in Lahore- Islamabad Motorway Project which was highly political in nature. Though it discouraged in getting more projects but with the re-election of Nawaz Sharif Government, Daewoo has come with its renewed commitments in taking part in development related activities. In the first phase, company would import buses from Korea and intends to invest $60million in its transport venture which would have 600 buses fleet in total. Company source says that it is also considering installing a bus assembling plant to take part in the massive demand of passenger transport. The company commenced its business on December 10, 1997 after obtaining certificate for commencement of business from registrar of companies, Lahore. Daewoo Pakistan Motorway Services Ltd. was incorporated as a public ltd. company on October 23, 1997.The object of the company was to provide services on Lahore- Islamabad motorway. Daewoo Pakistan Express Bus Services Ltd. was...
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