#generalmotorskorea

We return to Abandoned History’s coverage of the twists and turns of the Daewoo story, at a time when the company’s predecessor, Shinjin, was no more. After an early Seventies joint venture with General Motors saw the company renamed to General Motors Korea, Shinjin bowed out of the deal after just five years. In 1976 Shinjin’s ownership in the business was sold to a state-owned Korean bank, and General Motors Korea was renamed to Saehan Motor Company. But that didn’t mean GM was out of the picture - far from it.

After a few successful years building a trio of Toyota models (Corona, Publica, and Crown), Shinjin was forced to look elsewhere for a business partner. Toyota wanted to sell cars in China, and China forbade any company that sold products on its shores from having operations in South Korea. As expected, the government stepped in and assisted in a new deal between Toyota, Shinjin, and General Motors. 

The deal was finalized in 1972 and saw Toyota sell its stake in Shinjin directly to GM. The 50-50 GM-Shinjin venture saw the latter immediately renamed to General Motors Korea. GMK was immediately the new face of GM product distribution in South Korea. Let’s embark upon a series of particular business arrangements involving Shinjin that didn’t last very long.

We return to our Abandoned History coverage of Daewoo Motors in the early part of the Sixties. Korea was a newly independent nation still in the process of building its economy after many decades of Japanese occupation. The new Korean government seemingly relied on two tenets in its earliest years: Centralized control and openness to bribes. 

Both those factors were at play when the government handed the production of all passenger cars to a single company, Saenara Motors. Via a huge loan and technical assistance from Nissan, Saenara built Korea’s first car, the Saenara (Datsun) Bluebird via knock-down kits assembled in South Korea. But once the government noticed there was too much capital flowing out of the country, they banned Saenara from buying more kits from Japan. The scraps of bankrupt Saenara were picked up by another company, Shinjin.