Daewoo


(60% share in the A-1 gas block) : Company Profile : Daewoo International (DI) is South Korea’s leading export trading company, trading primarily in chemicals, textiles, metals and steel. In 2002, the corporation could claim sales of US$5,340.6 million, a one-year sales growth of 11.4%, with a net income of US$65.4 million. [1] Moreover, DI is becoming increasingly involved in developing energy resources overseas.

DaewooDaewoo International holds shares in several Exploration and Production/E&P projects, such as oil production in Peru, off-shore gas development in Vietnam, a LNG plant in Oman and natural gas development in Eastern Russia. [2] Its E&P investment in Burma, however, could prove to be a goldmine for the South Korean-based company.

Daewoo and Shwe

Take Action!

Products of Daewoo International are widely available. They range from electronics, technical and living appliances [10] to motor vehicles and equipment, [11] and garments. [12] Boycott Daewoo products and put pressure on the company to withdraw any investment in Burma, which ultimately supports and sustains the military regime. Send a (pre-formatted) letter to Daewoo to express your concern about human rights and Daewoo’s investments in Burma.
Divest personally or help form a divestment campaign.
Boycott Daewoo products.
Learn more about Daewoo.
Send a (pre-formatted) letter to the Daewoo Corporation.

Read more about Corporate Stakeholders:

MOGE (Burma)
ONGC Videsh (India)
GAIL (India)
KOGAS (S. Korea)

Read more about:
Government Stakeholders
Peoples

Visit our Take Action section for more information on how you can make a difference in the ongoing SHWE Gas Movement! The company has been present in Burma since 1990. DI has several investments in Burma, ranging from a car assembly plant, timber and clothing manufacturing to gas extraction. In its garment manufacturing investment, DI is a joint venture partner of UMEH, a military controlled institution, which controls investment in the industrial sector in Burma. [3]

In August 2000, Daewoo International signed an exploration contract with the 100% military-owned Myanmar Oil and Gas Enterprise (MOGE) for the rights to oil and gas in the A1 off-shore block. DI holds a 60% share of the project after having sold stakes to India’s ONGC Videsh (20%), the Gas Authority of India Limited/GAIL (10%) and South Korean KOGAS (10%). The Shwe gas project is “part of Daewoo Corp.’s efforts to expand its presence in natural resources excavation projects around the world”. [4] In 2004 DI further acquired the offshore block A3, where it currently holds 100% of the gas rights. [5]

With the Shwe gas project, Daewoo International is expanding its overseas energy resource business from investment and production to exploration. The consortium led by DI discovered gas in the A1 Block in February 2004 [6]. Production is projected to start in 2009 and DI expects to yield a minimum of 100 billion won (US$ 86,2 million) in net profit annually for 20 years from 2010 from the A1 block alone [7] which would exceed the company’s current net income.

Despite international condemnation of the Burmese regime’s poor human rights record, Daewoo has invested in the country since the early 1990s. It is listed on the ‘Business and Human Rights Resource Centre’ list of companies investing in Burma [8] and on the International Trade Union Movement’s list of multinationals with links to Burma [9].

Sources:
[1] http://www.hoovers.com/daewoo-international/–ID__58190–/free-co-factsheet.xhtml
[2] http://www.daewoo.com/business/commodity_english.html
[3] “Boycott Triumph: Triumph or Disaster”, Campaigning for Human Rights and Democracy in Burma.
[4] Bloomberg, August 10, 2000
[5] http://www.daewoo.com/business/commodity_english.html
[6] “Burma – Cheers, jeers over giant gas find”, Asia Times, February 14, 2004.
[7] “Burma – Cheers, jeers over giant gas find”, Asia Times, February 14, 2004.
[8] http://www.business-humanrights.org/Categories/IndividualCompanies/D/Daewoo
[9] http://www.global-unions.org/burma
[10] http://www.daewoo-electronics.de/eu/products/index.asp
[11] http://www.daewoo-cars.co.uk
[12] http://www.pusan.co.kr