SOUTH KOREA: General Motors (GM) Korea, which is in talks with
debt-ridden Korean car maker Daewoo Motors, has hired LG Ad for a
corporate PR campaign.
The US auto giant is aiming to raise its corporate profile as it
conducts talks which may result in a merger with Daewoo Motors, a first
for Korea’s auto industry.
The Korean car market is dominated by domestic manufacturers Hyundai,
Kia and Daewoo and foreign involvement is a sensitive issue, according
to industry insiders.
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.
Daewoo Motors’ parent Daewoo Group, Korea’s second largest conglomerate,
is in the throes of major debt restructuring. Daewoo chairman Kim
Woo-chong and 12 senior executives offered to resign last month.
LG Ad will run a national media relations-led campaign to raise GM’s
profile as the merger talks progress. LG Ad, itself 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
GM Korea managing director Lee Kee-seop said: ’We have no plans to farm
out project-based PR to other agencies. Our direction for PR will be a
total communications campaign to enhance GM’s corporate image.’