Korean tycoon talks on economy

Kim Woo-Choong works to launch new automobile line

Kim Woo-Choong, founder and chair of South Korea's Daewoo Group, spoke about Asian economic policy and the debut of Daewoo's new automobile product line in the United States in front of a full-capacity crowd in the School of Business Administration's Hale Auditorium last night.

Citing a lack of preparedness for a changing international platform of economic policy, Kim addressed relations with the International Monetary Fund and told the mostly Business student crowd that his company is not as desperate as the U.S. media depicts.

"I am confident that the Asian financial crisis will be over at the end of next year," Kim said. "We're strong when compared to other Asian countries."

Daewoo has recently gained press in the automotive industry due to his unique marketing strategy. College students, called Daewoo Campus Advisers, are the company's only real connection to the buying public, providing test drives and information to prospective buyers.

Although Daewoo currently has no center of operations in Michigan, a planned direct-buy showroom is expected to arrive in the early part of next year.

While the program is unique, some have doubted its potential success, and most even consider the program too risky in the world's most demanding automobile market.

"Of course the idea is crazy," Kim said. "But I know it will be a success."

This week's official launch of the company's automobile product line marks the second time Daewoo cars debuted in this country. During the late '80s, a joint venture with General Motors Corp. and Daewoo created the Pontiac LeMans - a subcompact that raised mediocre sales.

Kim, who historically has been known to carry out risky business moves with consistent disinterest, said the current grim status of the Asian economy will be alleviated and a large expansion of his company will take place before the year 2000.

"We want to have 2.5 million cars produced per year and more business sites than we have now," Kim said.

Students' reaction to Kim's thoughts on the IMF brought about mixed reactions.

"I think financial reasons and bureaucracy had more to do with it than lack of preparedness," said Robert Kim, an MBA first-year student.

LSA junior Joon Mo said he was impressed by Daewoo's bold tactics.

"They're trying something new," he said. "It's going to be interesting to see if the plan works."

Already trumpeting 600 separate business sites around the world, Daewoo has grown at quickly since its inception in 1967 as a textile company.

"I'll be back next year, and the year after that, to prove that the plan works," Kim said.

10-02-98