Daewoo Affiliate Faces Resignations As Employees Question Sale to GM
                    October 18th, 2000

                    By HAE WON CHOI and ELIZABETH WILLIAMSON
                    Staff Reporters of THE WALL STREET JOURNAL

                    Daewoo Motor Co. is facing increasing problems in maintaining its
                    operations while its creditors negotiate the sale of the insolvent car
                    maker to General Motors Corp.

                    About 600 full-time employees at Daewoo Motor Sales Corp., an affiliate
                    that sells Daewoo cars in Korea, submitted resignation letters this week
                    to state-run Korea Development Bank, Daewoo Motor's main creditor.
                    An emergency planning committee representing the employees said an
                    additional 300 workers are expected to resign. The walkouts could
                    hamper Daewoo's ability to sell cars in Korea. Daewoo Motor Sales has
                    4,600 full-time employees.

                    The workers are demanding that Korea Development Bank guarantee
                    job security and fully disclose the details of the negotiations with
                    General Motors. The workers at Daewoo Motor Sales worry that
                    creditors will sell the company for an unfair price and allow General
                    Motors to cut staff. A spokesman at Korea Development Bank said it
                    isn't the creditors' decision to guarantee jobs and that the details of the
                    talks with General Motors can't be fully disclosed.

                    Daewoo's creditors opened talks with General Motors and its partner,
                    Fiat SpA, in early October to sell Daewoo Motor and related assets after
                    Ford Motor Co., the preferred negotiating partner selected in a June
                    auction, decided not to submit a final bid last month. Daewoo Motor is
                    part of the Daewoo Group, which creditors agreed to dismantle in
                    August 1999 after it amassed more than 89 trillion won ($78.9 billion) in

                    Meanwhile, in Poland, Daewoo plans to idle 1,200 workers beginning in
                    January at its truck plant in the city of Lublin. Poland's deputy finance
                    minister, Rafal Zagorny, said Monday that a government delegation will
                    fly to Seoul next month, demanding answers from one of Poland's
                    biggest foreign investors. Daewoo's business in Poland had been one of
                    the company's biggest success stories.

                    In Korea, Daewoo Motor also closed down a bus manufacturing line in
                    early October due to a lack of funds, and the company says that
                    without fresh financing, it will be difficult to maintain other operations.
                    "We need about 100 billion won every month for operations, and the
                    creditors haven't given a single won in operating funds," said Lee Chung
                    Kee, a spokesman at Daewoo Motor.

                    Daewoo Motor's creditors said after Ford's withdrawal that they were
                    willing to extend the company financing, but a spokesman at Korea
                    Development Bank said on Tuesday that the creditors haven't been able
                    to reach an agreement on how much each bank would lend.

                    "The banks are wary to lend money to Daewoo. They are becoming
                    increasingly unconvinced that they will get their money back," the
                    spokesman said.

                    Creditors injected 1.7 trillion won into Daewoo Motor to keep it
                    operating between August 1999 and June 2000.

                    Write to Hae Won Choi at haewon.choi@awsj.com and Elizabeth
                    Williamson at elizabeth.williamson@wsj.com