Koreans move to jump-start Daewoo's local operations

Daewoo Motor caretaker manager Jung Dae Lee met on Thursday with Daewoo-FSO's management and Economy Minister Janusz Steinhoff to discuss the question of easing the financial woes of the Zeran-based plant. The most significant outcome of the meeting was the Koreans' agreement to reduce by 3% the price of car parts imported from Korea in a bid to keep afloat Daewoo's operations in Poland. At the same time, however, Lee expressed skepticism about Daewoo-FSO's plans to increase its exports to Germany, in particular the Matiz model, which Koreans are fearful will create competition with their cars of the same make sold on the German market. Nonetheless, Steinhoff summed up his meeting with Jung Dae Lee by stating that the future of Daewoo-FSO now seems to look more optimistic. Separately, the activities of Daewoo Motor Polska in Lublin were paralyzed yesterday by its creditors' decision to block the company's accounts. The accounts are supposed to be freed today on condition that discussions are initiated shortly between the company's management and creditors on restructuring of the company's debts. (Prawo i Gospodarka, p. 3) M. S.-C.