Daewoo Electronics (former Dongbu Daewoo Electronics), acquired by Dayou Group, and Dauyu Winia, an existing electronics affiliate, will standardize and jointly use core parts for home appliances, and integrate R & D and logistics, while Hyundai & Kia Motors The model will be benchmarked to increase synergy. The group said it plans to raise the total sales of Daewoo Electronics and Daewoo World to about KRW 7 trillion by 2025.

"Our benchmarking company is Hyundai Kia Motors` way of operating," said Cho Sang-ho, vice president of Daeyoo Group, at a meeting held at the Plaza Hotel in Sogong-dong, Seoul. "We will benchmark the way we integrate R & D and logistics, "He said. There are no plans to merge the two companies, the company said.

The group has decided to concentrate on improving DaewooÊs financial structure this year with the goal of "surplus management". To this end, it has decided to put in funds for the sale of group savings banks and private personal belongings of Park Young-woo. The group sold Daewoo E & T`s stakes in smart savings banks to Daewoo E & T for W78bn in February to normalize Daewoo E & C. In addition, the company will increase its capital by 20 billion won from the third quarter, which will include the retained funds in the group and the individual directors` investment. The company also decided to acquire about 50 billion won in funds by selling its two fixed assets, the Logistics Center and Bupyeong Research Institute.

Meanwhile, Daewoo Electronics plans to raise its operating margin to 5% next year after establishing a profit base this year. He also said he would pursue domestic and international IPOs after 2020. "We will increase the competitiveness of refrigerators and washing machines, and make our microwave ovens one of the world`s best," said Ahn Jung-gu, the new CEO of Daewoo Electronics.

"Daeyu Winia is closely examining the part where Daewoo Electronics and Daewoo Electronics can expand their sales with the goal of increasing sales by 20% compared to the previous year." Daeyuwiniah`s sales last year is about 400 billion ~ 500 billion won. The two companies said they will increase sales to 7 trillion won by 2025 through synergy management.

Daewoo Electronics will utilize Daewoo Wii`s distribution network in its domestic and overseas department stores and Daewoo World will actively advance into overseas markets through Daewoo Electronics` overseas sales network. For example, it is a method to combine the fermentation technology of Daewoo Winiah`s dime with the Daewoo electronic refrigerator or to expand the large refrigerator product line that Daewoo Electronics lacked in Daewoo World.

Besides, the company will pursue the standardization and common use of key parts for home appliances such as electronic circuit board (PCB) modules through affiliates, securing cost competitiveness by purchasing equipment parts such as integrated parts, The company said.

Meanwhile, Daeyu Group said it plans to expand its business to autonomous vehicles and electric vehicle parts by utilizing the technology of affiliates such as Daeyu Atech and Daeyu Plus.

By Kim Eun silverkim@


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