Daewoo was a South Korean conglomerate that operated in a variety of industries, including automotive manufacturing. The company was founded in 1967 under the name Dewoo Industrial, and began producing automobiles in 1972. However, Daewoo went bankrupt in 1999.
The South Korean government had to assume the remaining $76 billion in debt after the company went bankrupt. Kim Woo Chung, the former chairman of Daewoo, was sentenced to 10 years in prison and $21 billion in fines for mismanagement, balance sheet fraud, and money transfer abroad.
Daewoo’s automobile manufacturing subsidiary “Daewoo Motor” was purchased by American GM (General Motors), separated from other Daewoo subsidiaries, and renamed “GM Daewoo” (GMD). This purchase and renaming provides GM with a strong foothold in the South Korean market, as well as access to Daewoo’s cutting-edge technology.
South Korean automotive brand Daewoo is now history
General Motors announced at the Seoul Motor Show that it will also sell the Daewoo under the Chevrolet brand in the South Korean market. GM’s decision to introduce the Daewoo brand as Chevrolet in Europe has been a successful one, and the company is now looking to replicate that success in South Korea.
The Daewoo brand continued only in South Korea, namely in its homeland. Daewoo is currently sold under the Chevrolet brand in South Korea as well as in Europe.