Sounds like you're guess is correct and it's gummed up.
There are four settings.
"O" =zero, closed, no gas going to the cylinder, used for launching grenades.
"L" =large, oversized port, reserved for use when more gas is needed, such as a dirty weapon, fouling, or lower pressure ammo.
"M" =medium, standard sized port, and the normal position for firing.
"S" =small, undersized port, used for when the rifle has extra gas energy, such as extreme heat, or higher-pressure ammo.
When you're looking at the gas regulator so you can read the letters, you'll notice there's an arrow on the front sight base above the regulator. That's the arrow you use to line up the letter for the setting you want.
To remove the regulator, push in the regulator button and line the button up with the arrow (the side of the button you press in, not the side that has the retaining clip). Then pull out the regulator. Unlike the FAL there is no spring tension pushing on the regulator, so it won't pop out on it's own. You have to actually pull it out. NO TOOLS ARE NEEDED! (aside from possibly something to push the button with, but I've never needed anything) If it's stuck so bad that you can't pull it out by hand, post here again and ask, or IM me and ask, before you try pliers/crowbars, etc.
It shouldn't be hard to move really. Same as a FAL's regulator if that gives you an idea. Don't loose it either. You'd have a hard time getting another. Also when you put it back in, make darn sure it's set on one of the letters. Because it doesn't have any spring pushing on it like the FAL, some people leave it accidentally unlocked and launch it downrange when they shoot it. Make sure it's set on a letter when you replace it.
There's a yahoo group for the Daewoo rifles at:
groups.yahoo.com/group/DR200/. It's worth signing up for, as there are a couple zip files with the owner's manual, and dispite it's dead look, there's actually alot of high quality infor about the rifles that gets exchanged. They're also far more likely to know about anyone making parts, or any parts available as well.