Looking back at the history of Korean buses, Daewoo Bus is always there. Despite Korea’s difficult economic situation in the 1950s, the bus industry took shape—headfirst on bare ground, all the way to building premium coaches. Here we retrace 50 years of Korean buses and 50 years of Daewoo Bus.
50 Years of Daewoo Bus
Editorial Planning: BusLife
Materials & Photos: Daewoo Bus Co., Ltd.
Editing: BusLife
Date Posted: March 24, 2004
In the 1950s, after the war, Korea’s “remanufactured vehicle” industry flourished. Surplus military trucks, jeeps, and three-quarter-ton vehicles—some auctioned from U.S. forces—were rebuilt into buses and trucks nationwide. Local operators and mechanics would flatten oil drums with hammers, panel and rework frames, and convert them into usable vehicles.
In Busan, Mr. Kim Chang-won and Mr. Kim Jae-won established Shinjin Industries in February 1955 under the UNKRA plan, producing Korea’s first minibus model, the H-SJ (25-seater), with over 2,000 units built during a boom period.
When these shared-ride buses entered service in Seoul, they were painted yellow; people called them the “yellow cars.” From here begins the prehistory of what would become Daewoo Bus.
In 1957, with US$200,000 in UNKRA funding, a maintenance plant was started and, that March, Shinjin Industrial Co. and Shinjin Industries, Ltd. were incorporated.
In 1960, the Shinjin Busan Plant—located in today’s Busanjin-gu—was completed. In 1962, the nation’s first large-scale auto assembly plant, Saenara Motor Co., Ltd. (capacity 6,000 units/year), was established in Bupyeong through technical cooperation with Nissan. That November, the company received approval as a mid-size auto assembler, and its microbus body exhibited at Deoksugung won the Minister of Commerce and Industry Award.
At the time, the Shinjin Bus (Busan) plant employed 150 people and produced a 3/4-ton microbus and 8-ton large buses (with wooden bodies).
From 1963, using engines, transmissions, and axles auctioned from U.S. forces and bodies of in-house design, the FB100LK was produced for roughly ten years, totaling 2,128 units.
In 1964, the company obtained approval to manufacture small passenger cars. In 1965, it acquired Saenara Motor and was renamed Shinjin Motor Co., Ltd. It then signed technical and parts-supply agreements with Toyota, acquired the Saenara Bupyeong plant, and produced Korea’s first large bus model, the B-FB-20. In 1967, Shinjin received approval as a comprehensive automobile manufacturer, moving steadily into mass production.
As Shinjin grew into a full-line automaker—acquiring the state-run Korea Machine Industry, among others—the Busan plant launched the 9-meter DB102L, building 4,049 units over about four years.
In 1972, Shinjin and GM each invested US$24 million to establish GM Korea (GMK) FMF. Open recruitment for new hires began; some employees who joined then still share pride in having witnessed the heyday of Korea’s pioneering auto industry. Multiple bus models were developed in this era: 9-meter classes such as the DHB400C and DAB with Toyota engines, and the 10-meter DB105 was also engineered.
In 1973, GMK unveiled the large “Chevrolet Bus” (BD model) and began producing the Chevrolet Light Bus (medium coach).
In 1975, Daewoo Heavy Industries and Korea Machine Industry completed diesel engine plants, and Korea’s first monocoque rear-engine bus (engine mounted at the rear) was developed.
Around the same time, German MAN engines were being phased out in favor of domestic units. The BD101, developed then, became the direct predecessor to the legendary BF101 in Daewoo Bus history.
1976 was a busy year: MAN engines were installed in the rear-engine buses; Daewoo acquired Korea Machine Co., moving into full-scale diesel development.
BD-series bus production surpassed 4,000 units, and the BD101 rear-engine bus—the BF101’s predecessor—achieved a milestone: the first Korean complete bus exported (20 units to Egypt) prior to its domestic launch. That year, with the state-owned Commercial Bank and GM each holding 50% stakes, the company was reorganized as Saehan Motor.
By year-end, the BD101 rear-engine bus entered domestic city-bus service.
In 1977, the localization rate for Saehan’s rear-engine buses exceeded 90%, and operations were structured around today’s Busan and Dongnae plants. That July, the storied Daewoo Group incorporated the company.
After joining Daewoo, BD-series cumulative production exceeded 7,000 in 1978, and in July Chairman Kim Woo-jung became CEO. A launch ceremony for the BF101 city express buses was held in Busan.
In 1979, the second oil shock began, raising benchmark oil prices by 59%. Following President Park Chung-hee’s assassination, the company urgently built a special hearse for the state funeral—specified with large panoramic glass, special seating, and a body lowered by 100 mm. Many recall the intense effort that job required.
The driver later recounted being so tense that he could barely endure a restroom break—under the gaze of an entire nation.
In 1981, Mr. Choi Myeong-geol became the sixth president (preceded by 1-Kim Chang-won, 2-Kim Jong-dal, 3-Kim Woo-jung, 5-Lee Seok-hee). In 1982, the premium rear-engine coach BV113 was developed.
In 1983, Saehan Motor Co., Ltd. was renamed Daewoo Motor Co., Ltd., and full-scale express coach development began. The BH120S, equipped with MAN’s D2848 (310 ps), was the first in Korea to use galvanized steel panels. Unit No. 1 served the Daewoo Royals football club, Korea’s first coach outfitted as a mobile lounge—with meeting room, refrigerator, and VCR.
By year-end, the BV113 entered mass production. In 1985, production ramped around the clock after development; a record of 24 units/day still stands. Ten years after launch, BF101 cumulative output hit 30,000 units, commanding 50% of the domestic market as a single model.
Yet this period also marked the end of Daewoo Bus’s brief golden era.
In March of that year, Daewoo and GM agreed on the “World Car” project and prepared to expand small-car lines. However, labor disputes escalated. Passenger cars saw some new development, but large buses, under financial strain, steadily lost the investment bandwidth needed to sustain momentum.
Even so, Daewoo introduced the BS105 city bus and the BH115H premium tour coach in 1986, completing a foundational lineup: (City: BF101, BS105 / Intercity: BV113 / Intercity express: BH115H / Premium express: BH120H).
In 1991, the BH120H was facelifted into the BH120F—matching today’s express-bus profile—and series production began in early 1992. The BH117H followed in 1995, and the BH116 in 1997, targeting niche segments.
Notably, the BM090, developed in 1996 amid tight capital, shortened the city-bus length to counter a rival’s mid-size entry. Though a compromise at the time, it aligned with operators’ needs to cut costs as ridership declined—and unexpectedly evolved into a core product.
In 1995, joint production began at today’s Guilin (China) plant. In 1998, considering the tourism sector’s headwinds, the economical BH115E was developed. For the Seoul Public Transport Exhibition, Daewoo launched the BS120CN low-floor bus—the first commercial low-floor bus in Korea—securing a leading position in accessibility.
Daewoo also developed a CNG low-emission bus for the exhibition, and an LPG-fueled bus that entered pilot service.
Despite adversity, relentless development allowed the company to remain a front-runner in the bus sector.
However, following group-wide restructuring, court receivership (workout) was decided in 1999. Chairman Kim Woo-jung bid farewell to Daewoo Group at year-end. In November 2000, Daewoo Motor suffered final default; Ford withdrew its acquisition proposal in 2001; massive headcount reductions triggered a prolonged production halt at the Bupyeong plant.
Even then, the bus division mass-produced low-emission CNG buses. The BF106—an exterior enhancement of the BF105—emerged as an export mainstay, and low-floor buses were built in volume for the Asia-Pacific Disability Congress.
In May 2001, as GM’s acquisition policy took shape, GM excluded the commercial division in the reorganization plan, prompting the bus unit to pursue independent survival.
Fortunately, thanks to the bus plant’s workforce and steady export orders, operations were stabilized. With a brighter outlook, the unit emphasized business diversification and engaged with Young-An as the first prospective acquirer.
Fifty years of history is both an asset of accumulated know-how and a potential burden of entrenched habits.
For the next fifty, Daewoo Bus aims to break from fixed ideas—building a culture fit for a new era, backed by advanced technology and products—and write a new chapter.