d to handle the heavy engineering project. Nevertheless, Kim soon saw Daewoo earn a reputation for producing competitively priced ships and oilrigs.During the next decade, the Korean government became more liberal in their economic efforts. Small private companies were encouraged, protectionist imports were loosened, and the government stopped practicing positive discrimination. These moves were designed to encourage free market trade and to force the chaebol to be more aggressive abroad. Daewoo responded to the challenge by establishing a number of joint ventures with U.S. and European companies. They expanded exports of machine tools, defense products, aerospace interests, and semiconductor design and manufacturing. After a gradual learning curve, they begin to build civilian helicopters and airplanes, which were priced considerably cheaper than those produced by their U.S. counterparts. They expanded their efforts in the motor industry and was ranked as the seventh highest car exporter and the sixth largest car manufacturer in the world. Daewoo had excellent experience at turning around faltering companies in Korea.ISSUES:There were many issues discussed in this case across the years of growth, but I will focus on the major issues in this case. Those issues are as follows:1. Government Interventions: Government policy served as a double edge sworn, it protected the chaebol, providing them with massive subsidies, unlimited cheap credit, and protection against foreign competition. However, the price for these services was total loyalty to the government. Chaebol were forced to take over industries against their will. The government was constantly involved in their businesses and stifled their creativity.2. Labor Market: Traditional work ethics that helped Korea reach economic prosperity has been threatened as workers have begun increasingly violent protest against years of long hours and low pay. Daewoo shipbuilding suff...
