BY MELANIE SJOBERG
Representatives of the Daewoo Motor workers' struggle committee and Korean Confederation of Trade Unions have launched an international campaign to arrest Kim Woo-Choong, former chairperson of the Daewoo group of companies. They claim that an investigation by government prosecutors found Kim has embezzled the colossal amount of US$34 billion and is responsible for the bankruptcy of Daewoo.
Although the South Korean government has arrested several other former executives of Daewoo on suspicion of fraud it has not mounting any effort to track down Kim.
Daewoo union activists have travelled to Paris where Kim is believed to be hiding. There they obtained the support of French trade unions and the Revolutionary Communist League (LCR) in carrying out street actions to promote their struggle against Daewoo's attempts to sack thousands of its workers. Next they will mount activities in London.
This activity is being conducted in conjunction with intense industrial action by workers at Daewoo plants in South Korea.
A brutal attack at Daewoo Motors' Bu-pyong plant by riot police on February 20 ended an occupation by about 500 striking workers. A week later more than 400 workers rallied at local office of the government's labour affairs administration protesting the job cuts and declaring that the company is in breach of the Korean Labour Standards Act which makes it illegal to sack injured workers. The workers plan to continue such rallies each day until March 10.
The campaign for job protection is a vital aspect of the struggle between the workers and Daewoo but underlying this struggle is actually the battle between the global car-manufacturing corporations to dominate the south-east Asian and Chinese markets.
Daewoo Motors, once Korea's second largest car manufacturer, has been under a debt-restructuring program since the Daewoo Group collapsed in August 1999 under US$80 billion of debt. Tens of billions of dollars of public funds have also been offered in a salvage attempt but creditors and the government have pushed for drastic cost-cutting, which they said would be crucial for selling the company.
The ability of foreign automotive corporations to enter the Korean market has been assisted by the generosity of various creditors to the bankrupt firm. A deal between major creditors in January 2000 removed a large stumbling block to the Daewoo restructuring. Creditor banks agreed to reclaim only 40% of their loans to Daewoo subsidiaries and wipe off the balance. They also agreed to provide 727.9 billion won (US$607.6 million) in fresh funding after pushing for agreement on job cuts.
These creditors included a range of foreign banks — Chase Manhattan, HSBC Holdings, Tokyo-Mitsubishi, Dai-Ichi Kangyo, Citibank, ABN Amro, National Australia Bank and Arab Bank.
Both Ford and General Motors have sought to take over Daewoo Motors. Ford pulled out of a US$6.9 billion takeover bid in September 2000, but General Motors has continued to pursue its take-over ambitions. David Jerome, managing director of GM, described the take over of bankrupt Daewoo Motors as part of GM's global strategy.
Solidarity information with the Daewoo Motor workers' struggle can be found at campaign website: .