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Daewoo and the Korean Chaebol                                                                                                                                                          
Product Ref: 01/105C Company: Daewoo Motors

Product Type: Case Industry: Automobiles & Components

Related Product(s): N/A
Daewoo Motors, South Korea's second largest carmaker was on the verge of bankruptcy in September 2000. The once-proud Daewoo Group (the parent company of Daewoo Motors) has been charged of not just being reckless in its investments but also fraudulent in its practice. The Government must decide whether to bail out the company or let it fail. Given the importance of the company's contribution to the South Korean economy, however, the decision would have profound impacts on the direction of ongoing market reforms as well as the livelihood of its workforce at home and abroad. This case is designed for an MBA level course in International Business. It traces the origins and growth of the Daewoo chaebol within the context of South Korea's economic development framework, and highlights the advantages and disadvantages of such a system.
Functional Area : Economics & Business Policy
Strategy & General Management

Issues: Chaebol, Government Policy and Reforms
Length: Text: 13 pages
Exhibits: 17 pages
Country: Korea (Rep. of)

Pub. Year: 2001 Level of Difficulty: 2
This product type is available in the following language(s):      English   Simplified Chinese
Related Information: N/A
This case is UGC funded.
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