Daewoo Songdo Development (South Korea)

Sales sharply fell on previous year, because of reduction of auto parts sales and order shrinkage in the construction sector, owing to termination of exclusive agent contract of goods sales with GM Korea. Operating loss rose on previous year, due to sharp increase in bad debt expenses and outsourcing expenses, and firm's net loss rose, owing to declined non-operating balance. Thru workout, the firm conducted personnel division of auto biz segment in Sept. 2010, and Daewoo Motor Sales Corp. was established, a new spin off, and in view of all this, the firm makes a great effort for management normalization. Sales are projected to go down, due to cancellation of an agreement for sole agency for goods sales, arising from contract termination with GM Daewoo Auto & Technology, and planned division of construction segment. As the creditor group decided to additionally divide construction biz segment in March 2011, the segment was divided into three companies: Daewoo Motor Sales Corp., Daewoo Industrial Development and Daewoo Songdo Development. Firm makes an effort to improve financial structure with a plan to repay borrowings thru selling of real estate including land in Songdo, PF workplace and stocks for management normalization.