©2013 INSEAD Case Study
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.
Pedagogical 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.