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Daewoo Protests Submarine Report

Dec 29,1998
Daewoo Heavy Industries strongly protested a submarine building evaluation report made by the Ministry of National Defense. Daewoo regards the report as completely unacceptable in that it intentionally ignored and underestimated Daewoo's ability.
Daewoo's president, Shin Young Gyun, held a press conference on December 29 at the Hilton Hotel and said, 'The Ministry's evaluation was distorted in the course of its final conclusion which gave a free way in the business for Hyundai.'
He continued, 'The Ministry is not announcing the details of the evaluation nor how they arrived at their conclusion even after it finished rating both groups. We would like to know committee members' opinions, how the report was processed and the promised public hearings on the evaluation.'
Daewoo has let it be known that it will file a lawsuit against the decision unless its requests are accepted.
Shin also raised concerns and suspicions on the Ministry's ability to assess shipbuilding, emphasizing that it seemed to willfully disregarded Daewoo's capacity.
The Ministry defended its evaluation stating that it researched in conjunction with other ministries and drew accurate conclusions based on competitive principles.


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