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The loss reported was also three times higher than that reported in 1999, and was ranked as South Korea's largest ever corporate loss. In addition, the company's domestic market share fell from 33% in 1998 to just 23% in 2000. According to analysts, Daewoo's borrowings for its expansion programs were responsible for its losses. The company's domestic and foreign debt amounted to more than $16.06 billion in December 1999.
Moreover, its expansion into risky and uncertain markets like Vietnam and its decision to sell products at very low prices to gain market share had negatively affected its financial condition...
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