SOUTH KOREA: General Motors Korea, which is in merger talks with debt-ridden Korean car maker Daewoo Motors, has hired PR firm LG Ad to smooth its possible further advance into the country.
SOUTH KOREA: General Motors Korea, which is in merger talks with
debt-ridden Korean car maker Daewoo Motors, has hired PR firm LG Ad to
smooth its possible further advance into the country.
The Korean car market is dominated by domestic manufacturers Hyundai,
Kia and Daewoo. Foreign involvement is said to be an extremely sensitive
issue, according to industry insiders, which raises the stakes for the
company’s local PR efforts.
As the merger talks progress, LG Ad will develop and implement a
national media relations campaign to raise GM’s profile. The agency
(part of the third-largest Korean conglomerate, LG Group) won the
account in a five-way pitch against incumbent Communications Korea,
Incom, Briman and Edelman PR Worldwide.
’We have no plans to farm out project-based PR to other agencies,’ said
GM Korea managing director Lee Kee-seop. ’Our direction for PR will be a
total communications campaign designed to enhance GM’s corporate
Koreans are still reeling from World Bank and IMF economic reform
recommendations made in 1998 which were perceived as foreign attempts to
damage the national economy. Additionally, Daewoo Group is in the midst
of major debt restructuring.
The problems were sufficiently severe and embarrassing so as to prompt
Daewoo chairman Kim Woo-chong and 12 senior executives to offer to
resign last month.