SOUTH KOREAN CAR MAKER DAEWOO PLANNING TO INVEST IN CROATIA

ZAGREB, Jan 24 (Hina) - The South Korean car maker Daewoo plans to start manufacturing car parts in Croatia this year and make investments in its tourism and banking system, Daewoo Zagreb office director Il-Hyung Cho said on Friday. Croatia is very attractive to foreign investors because of its favourable geographical position, he told a news conference in Zagreb. Daewoo, which opened its office in the Croatian capital late last year, is looking into the possibilities of investing in the existing car-parts manufacturing factories and in the construction of new plants. Car parts made in Croatia would be used in the company's assembly plants in Poland and South Korea, Cho said. As shortcomings of the Croatian economy, Cho cited high tax rates, unfavourable credit conditions and, compared to other European countries in transition, a high cost of labour. Daewoo manufactures 2.5 million cars a year. Besides South Korea, it also has plants in Europe, Asia, Africa and Australia. Later this year, after carrying out its plans in Croatia, it will also start production in the United States. (hina) vm jn 241705 MET jan 97