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LG HYUNDAI focus on semiconductors in restructure according to Korean newspaper today:
Hyundai And LG Release Restructuring Plan
The Hyundai and LG groups announced their voluntary corporate restructuring plan Monday, incorporating the external selection of directors, external auditing, no cross guarantees and concentration on core industries. Samsung and SK groups are expected to announce their restructuring measures on Tuesday.
Park Sey-yong, president of Hyundai's central planning office, said that external directors are to be selected to ensure transparency of its business and financial structure, and as a means of protecting shareholders' interests. The group is to withdraw its holdings in the 'Munhwa Ilbo' newspaper and halt construction of a new steel mill. In addition it is not to takeover the bankrupt Halla group.
LG is to liquidate all none core businesses, valued at W15 trillion, by the year 2002, end cross guarantees by 1999 and will publish its first consolidated financial report in 2000. The company is to focus on areas that it is competitive in internationally such as telecommunication and information and semi-conductors. As its first measure LG is liquidating 90 fringe businesses, worth W2.4 trillion, by 1999. |
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