Restructured company financially and managerially independent, says CEO

The bankruptcy of Daewoo Motor Company will not affect Daewoo Electronics, because the latter is financially and managerially independent, Daewoo Electronics' CEO and President Ki-Hyung Chang has assured business associates and customers around the world.

Moreover, Daewoo Electronics has been assessed by Korean creditor financial institutions to be the most successful corporate restructuring example among the 12 Daewoo Group companies and was turning out the most financially sound as a result of restructuring begun one and a half years ago, Mr. Chang has said in a statement.

Since August 1999, Daewoo Electronics Co. Ltd, has sold its unprofitable assets and the shares it held in other Daewoo Group companies, disposed of non-core business units and streamlined its organization and network to be more focused on the company's strength he has explained.

"The Daewoo Group companies have completely done away with all managerial and financial inter-dependent relationships among them" Mr. Chang said. He also disclosed that in October 2000 the Korea Asset Management Corporation, a Korean government agency specializing in distressed debt had acquired Daewoo Electronics' debt, relieving the company and its subsidiaries from payment of principal and interest.

In Sri Lanka, Daewoo Electronics has been represented by Hayleys Electronics since late 1997. Commenting on these assurances, the company's General Manager Keshini Ediriwira said: "Daewoo has become a very strong brand in the local domestic appliances market, and this should dispel any concerns that may have arisen in the minds of customers as a result of recent news reports on Daewoo Motor Company's troubles."

"Daewoo has earned a reputation as a sturdy and reliable brand suited for conditions in Sri Lanka." Ms Ediriwira added. "There is a large and loyal customer base, which will welcome the news that Daewoo is financially sound. Prospective customers also need not harbour any reservations about the brand.

Among the popular Daewoo appliances marketed by Hayleys Electronics are refrigerators, washing machines and microwaves. Hayleys was recently selected the most outstanding White Goods distributor for Daewoo in the Middle East and Africa Region at a Regional Conference held in Dubai.