Daewoo's French Affair - condensed

Published 20 Dec 2013
Reference 4678
Region Europe
Summary

Daewoo Group companies run a distant third or fourth in their respective industries in Korea, but they are rapidly expanding their presence, mainly through acquisitions, in foreign markets. In this context, Daewoo Electronics makes a bid in 1996 for the heavily indebted French electronics manufacturer Thomson Multimedia, which is being privatised. The French government's October announcement of its preference for Daewoo's bid unleashes a storm of criticism in France, and the French Privatisation Commission's subsequent refusal to endorse the government's decision creates a major diplomatic incident between France and Korea.

Teaching objectives

To introduce one of the most aggressive Korean chaebol and its extraordinary growth plans. To expose the complexity of the issues, which can surround cross-border, cross-cultural acquisitions. T o contrast Korean and French industrial policies.

Keywords
  • Internationalisation
  • Globalisation
  • Korean MNCs
  • Government Policy
  • Privatisation
  • Acquisition
  • State-owned Enterprise
  • France
  • Q21314
  • European Competitiveness Initiative
  • European Competitiveness
  • Europe
  • Government and Policy