Daewoo Trims Down to 10 Companies

Daewoo, the 3rd largest chaebol in Korea, announced on December 8 that it will reduce its 41 subsidiary companies to 10 major ones through its restructuring plan.
Daewoo emphasized that it will unite similar businesses into one so as to provide a better financial structure and independent management for the 21st century.
Daewoo will limit its business sphere to four major sectors: trade and construction; automobiles; heavy industries; finance and services. Its electronics division will be merged with Samsung's.
105 corresponding companies with 15,000 employees are part of the restructuring project.
Daewoo will also concentrate on shoring up its financial structure by selling its stocks and bonds while inducing foreign investment so that the groups' debt ratio can be trimmed down to 181 per cent by late 2000 from its current 405 per cent.