Korean company Daewoo Motor has finally accepted to cede 51% of the Craiova-based SC Daewoo Automobile Romania SA to the Romanian state to compensate long-running debts, the Romanian Economy Ministry announced on Thursday.

According to Romanian officials, the negotiations with Daewoo representatives to find a solution for the Craiova car-making plant broke a deadlock after a Romanian delegation visited South Korea on June 19-21, 2006.

A contract for the transfer of shares will be approved by the Romanian Government and the Incheon Seoul District Court in the coming period.