India's EBG Group signed a licensing deal late last month with POSCO International, which holds the "Daewoo (DAEWOO)" trademark, to use the Daewoo brand in India's home appliance market. EBG Group plans to roll out major appliances such as refrigerators, washing machines, and air conditioners under the Daewoo brand.
EBG Group said it will invest 1 billion rupees (about 16 billion won) over the next three years in distribution network expansion and product development, including opening some 100 Daewoo appliance stores by next year. A POSCO International official said, "In regions where the Daewoo brand has high recognition, there is still considerable demand for the trademark."
Even after Daewoo Group, once Korea's No. 2 conglomerate, was dismantled in the aftermath of the 1999 foreign exchange crisis, the Daewoo brand continues to carry weight overseas. POSCO International is generating about 16 billion won in annual trademark revenue by leveraging the Daewoo mark.
According to POSCO International's business report on the 12th, as of the end of last year the Daewoo brand had a total of 3,420 registered trademarks in 175 countries at home and abroad. These include "DAEWOO," "大宇," and the Daewoo symbol mark.
POSCO International holds the Daewoo trademark rights in Korea and overseas and runs a brand business utilizing them. Under licensing agreements, users of the Daewoo mark pay POSCO International a set amount of royalties.
A POSCO International official said, "Dozens of corporations have signed Daewoo trademark license agreements and are paying royalties (fees)."
POSCO International traces its roots to Daewoo Industries, the progenitor of Daewoo Group. After the group's breakup, Daewoo International, established in late 2000 through a spin-off of the trading institutional sector of Daewoo Corp., took over the Daewoo trademark. After POSCO acquired Daewoo International in 2010, it changed its name to POSCO Daewoo in 2016 and again to POSCO International in 2019, while retaining ownership of the Daewoo mark.
Before POSCO acquired Daewoo International, Daewoo trademark revenue stood at 2.9 billion won in 2009. In 2011, after the acquisition, it lent the mark to Daewoo Electronics and Daewoo Electronic Components, generating about 3 billion won in revenue.
Subsequently, Daewoo trademark royalty revenue jumped to 7.1 billion won in 2021 and exceeded 10 billion won for the first time in 2023 (10.1 billion won). Last year's royalty revenue was 15.8 billion won, up about 13% from 2024 (14 billion won).
Most Daewoo trademark revenue comes from overseas use. That is because POSCO International holds exclusive ownership of the Daewoo mark abroad.
According to POSCO International, demand for the Daewoo trademark is high mainly in the CIS (Commonwealth of Independent States), the Middle East, Central and South America, Europe, and China. It is used primarily for electronics, auto parts, and tools.
Industry observers say the strong recognition Daewoo Group built in emerging markets during former Chairman Kim Woo-choong's era of "global management" still resonates with local consumers. In particular, in the 1990s after the end of the Cold War, Daewoo Group aggressively expanded its overseas production bases and sales networks by building appliance and automobile plants in Eastern Europe.
At the time, Daewoo Electronics was recognized as a leading appliance brand in Eastern Europe. Daewoo Electronics pursued a localization strategy by acquiring a Polish appliance company and producing locally, rising to No. 1 in Poland's appliance market share. In 1995, it even declared it would make Russia its second domestic market.
Daewoo Motor also held a strong position as a "people's car" in Eastern Europe and Central Asia. It acquired car companies in Romania and Poland to establish local production systems. It also swept the Russian auto market with a strategy of exporting cars produced locally in Uzbekistan to Russia tariff-free.
Turkish appliance company Vestel signed a 10-year agreement in 2021 with POSCO International to use the Daewoo mark and is selling appliances bearing the Daewoo brand. Vestel is exporting a wide range of Daewoo-branded appliances to Russia, the CIS region, and Middle Eastern markets.
The Daewoo brand is also staying power in the Middle Eastern and Central and South American appliance markets. In the late 1980s, Daewoo Electronics became the first in Korea's appliance industry to export TVs to the Middle East. The "tank-ism" that emphasized durability became a symbol of Daewoo appliance quality. In the early 1990s, it built an appliance plant in Mexico, boasting strong brand power in Mexico and Central and South America.
A POSCO International official said, "In regions where Daewoo Group once had a strong presence, awareness and trust in the Daewoo brand remain high," adding, "The brand asset of the past is translating into demand for the trademark."
In Korea, POSCO International is also the registrant for all Daewoo marks registered with the Ministry of Intellectual Property. However, depending on the designated goods, some are each registered with former Daewoo Group affiliates as joint owners. In Korea, if a company that used to be a Daewoo affiliate is registered as a joint user of the trademark, it does not pay royalties, but for overseas use of the Daewoo mark, it must pay royalties to POSCO International.
Daewoo Engineering & Construction, which was launched after the construction institutional sector of Daewoo Corp. was partitioned, is a prime example. In Korea, Daewoo Engineering & Construction is registered as a joint owner in the construction field and does not pay royalties. In contrast, in overseas markets it pays royalties to POSCO International to obtain and use perpetual rights.