Daewoo president soothes fears of imminent liquidation

According to the report issued by the main creditor of ailing Korean car maker Daewoo Motor, Korea Department Bank, and published by the Korean Herald on Monday, foreign subsidiaries owned by the Korean company will be liquidated if an appropriate investor is not found. This information runs contrary to the contents of the letter written by Daewoo Motor's president Young-Kook Lee to Polish Treasury Minister Aldona Kamela Sowinska. The letter says that Daewoo plants in Eastern Europe will continue the production of parts sent from Korea "for some time". Daewoo-FSO's representatives took it as an assurance from the Korean side that the Polish factory will operate without interruption. "We are convinced that the best scenario for Daewoo-FSO will be to find a strategic investor who would like to purchase the company" says Young-Kook Lee in the letter. According to earlier reports by Rzeczpospolita, Daewoo-Motor gave assurances that US car concern General Motors will focus on the Polish company as soon as the purchase of the Korean company is finalised. (Rzeczpospolita, p.B3) A.Z.