Cost efficiency, fundraising ability and technological competitiveness are the key factors for automobile manufacturers, as they require economy of scale effects with large capital investment. Meanwhile, solid sales network, after services, innovative strategies and differentiated marketing activities control are the keys for specialized automobile distribution company such as Daewoo Motor Sales.

The domestic automobile market recorded great growth rates after economic crisis of 1997-1998, but more recently the overall market growth has slowed. This is in part because consumers have not fully recovered from a burst in personal financing resulting from a bubble in credit-card expenditures. The year 2004 recorded the lowest growth rates since 1998. And in 2005, the domestic automobile market just reached to 1,120,000 units, an increase of 2.4%, compared to the previous year, reflecting a three year stagnant spell in the market.

The stagnant growth in new car sales resulted from sluggish consumption, high oil price and increase of jobless people. High oil prices have hurt the sales of SUVs and minivans, but sales of medium and large-sized automobiles have increased while. The sales of vans declined as a result in a hike in taxes, after the government ended tax holidays on a range of so-called luxury items.

Meanwhile, the future of construction industry, in contrast, looks bright. The increase of national income and high demand of quality life have led to a mushrooming demand for premium housing. Another reason for a favorable outlook in this sector is the government¡¯s aggressive investment to make Korea a logistics and financial hub for North-East Asia era; this means there is spiraling demand for private-invested SOC projects, expansions of infrastructure that will facilitate the stated goals of the government.

Recent construction market is shifting into larger private-invested SOC projects, turn-key based contracts and total construction management methods. Therefore, short-/long term planning, designing, engineering and fundraising capabilities as well as credibility of a company are the key factors for construction companies.

According to the market changes, we strive to secure unrivalled competitiveness through the improvement of work process, profit-centered performance evaluation and reorganization in our automobile sales division. Meanwhile, we continue to expand operations into the premium housing market and to enhance the total construction management capabilities in civil engineering, environmental facilities and industrial plants in our construction division. Also, we¡¯ve been also seeking to diversify stable revenue streams from new areas.