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To: DJBEINO who wrote (2737)	3/10/1998 9:59:00 AM
From: DJBEINO	Respond to of 9582

Korea: Lack of Raw Materials Puts Businesses In Trouble The difficulty in acquiring raw materials, as their prices have increased by 40 to 100 percent, has put many businesses in a difficult situation. There is a case where you cannot buy raw materials even with cash. According to a survey by the Office of Small Business stock of steel, stainless steel, alloy metals, and polyesters is appropriate level for 15 days supply but the stock of copper, brass, synthetic plastics, tin, and rubber is only enough for 1 week. This put companies that depend on these materials in a dangerous situation. A woollen textile producer in Shinpyong Textile Industry complex in Pusan said that due to insufficient raw yarn his company has had to cut production by 50% and that within a month all their stock will be depleted. Among the 50 factories in the complex 3 or 4 have ceased production partly due to a fall in order and partly due to the difficulties in acquiring raw yarn. An electronics parts exporter in Saehan complex in Seoul said that they have only one weeks supply of raw materials for parts because since the beginning of the IMF situation the price has doubled but even with the higher prices it is still difficult to acquire needed raw materials.