Daewoo Workers Protest & Burn US Flag

(Editor's Note: When in doubt, do something stupid)

Seoul - At least three people were injured on Saturday when approximately 2,000 students, union members and laid-off workers held a march to condemn the Korean government's goal of selling the bankrupt Daewoo Motor Co. to General Motors Corp. Demonstrators protesting government-backed layoffs threw stones and firebombs at riot police and burned an American flag.

Daewoo Motor laid off 1,751 workers in February in order to make it a better business prospect for GM. South Korea's third-largest carmaker has been surviving under court receivership, a process under which all debts were frozen and new management was installed, since it filed for bankruptcy in November. At the time debts, were estimated to be at least $10 billion.

In response to the weekend's mayhem, Daewoo's creditors have said they will supply $193 million in loans this month to help the insolvent Korean automaker pay suppliers and staff, and buy raw materials.

Korea Development Bank and other creditors agreed to provide the funds, part of a larger loan package they pledged to grant this year.