Daewoo Electronics is reclaiming ground

To rescue troubled Daewoo Electronics Co. from the now defunct Daewoo Group, creditors last November separated the core businesses of the firm and created a new entity, Daewoo Electronics Corp. The reborn company has since inherited several divisions that manufacture audio and video devices, air conditioners, refrigerators, washing machines, micro-waves and vacuum cleaners, but has left its debts to be handled by its defunct predecessor. Despite the situation, Kim Choong-hoon, president of Daewoo Electronics Corp., is upbeat, saying Daewoo Electronics Corp. aims to be a profit-making entity this year, generating 100 billion won ($85 million) in net profits on 2 trillion won of revenue. "We will graduate from our debt workout program before the end of the year and will recover our reputation as the master of home electronics," Mr. Kim said yesterday. "We are determined to be a consumer-centered company," he said. "We will make products that are family-friendly, environmentally friendly and health-friendly." To stress its new focus on consumers, the firm recently changed its company logo and symbol. "In line with our three concepts, we are selling 'oxygen' air conditioners, no-detergent washing machines, and sterilizing refrigerators," Mr. Kim said. "The products to come next are sterilizing microwaves and vacuum cleaners that do not produce exhaust." Seven years after leaving the former Daewoo Group as head of its French operations, Mr. Kim was picked to head the new electronics company. He is credited with the succesful financial restructuring at Hyosung, another large corporation. "An era of environmentally friendly and health friendly home appliances will open this year," Mr. Kim said. "If our plans go smoothly, we may be able to relist on the Korean stock market around 2005. "As soon as the company returns to normal, we will give top priority to employing former Daewoo workers who had to leave." by Ha Ji-yun