Clashes as Daewoo plant reopens

Protesters hurl firebombs at riot police. There have been no reports of casulaties in the latest protest

In this story: Violent protests a recurring problem Arrest awaits company's former chairman RELATED STORIES, SITES

BUPYONG, South Korea -- Hundreds of labor activists and students clashed with riot police on Wednesday, protesting the mass layoff by insolvent Daewoo Motor Company at its main Bupyong plant.

Around 1,500 workers tried to march through the streets after a two-hour rally at a university. A few hundred workers, many wearing surgical masks to hide their identity, clashed with about 1,000 riot police.

Protesters hurled firebombs and rocks at riot police, in a renewed protest against the company's dismissal of 1,751 of its workers last month.

Some 1,500 workers at a provincial plant in Changwon also walked off the job for several hours on Wednesday in sympathy with laid-off workers at the main plant.

Fighting broke out shortly after Daewoo reopened its Bupyong plant, which was shut down for 20 days.

No reports of injuries or arrests have been made so far.

Earlier in the day, police detained 200 protesters who tried to block dozens of buses carrying Daewoo workers to the plant.

Several gathering points for workers were designated to prevent protesters from entering the plant.

Violent protests a recurring problem

Since the February job cuts, thousands of laid-off workers and their supporters have held violent protests in Seoul and Bupyong.

Riot police clash with protesters

South Korea's third-largest carmaker, closed down its Bupyong car plant on February 16. The 1997-98 Asian financial crisis resulted in the collapse of Daewoo Motor and many other businesses that had recklessly expanded on borrowed money.

Daewoo Motor has been operating under court receivership -- a process under which all debts were frozen and a new management installed -- since it filed for bankruptcy in November with estimated debts of at least $10 billion.

In return for emergency loans from creditor banks, Daewoo Motor promised to shed 34 percent of its workforce, or 5,500 of its 16,000 workers. About 3,700 workers resigned voluntarily.

Daewoo's creditors and management expected the layoffs to accelerate takeover negotiations with U.S. auto giant General Motors Corp.

The government has also encouraged businesses to streamline their operations to lure investors and prop up the country's economy in the process.

Arrest awaits company's former chairman

Earlier, Korean prosecutors said they already have a warrant to arrest the company's fugitive former chairman, Kim Woo-choong.

A South Korean court has not formally charged Kim, 65. But it is allowing his arrest for questioning because he has not returned to Korea voluntarily.

In early February, seven former executives were arrested on fraud and embezzlement charges.

Prosecutors accuse Kim of obtaining $20 billion by diverting Daewoo funds and securing illegal loans.

Investigators do not know his whereabouts, but they plan to seek Interpol's help. Unconfirmed reports have placed him in Sudan, Morocco or the United States.

The Associated Press contributed to this report.

Fiery clashes as Daewoo protests continue
February 24, 2001
Police battle Daewoo protesters
February 22, 2001
Daewoo activists occupy Korean highway
February 21, 2001
Unions warn of more Daewoo protests
February 20, 2001

Daewoo
South Korea : Government

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