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To: RFF who wrote (11552)	4/10/1998 2:13:00 PM
From: RFF	Respond to of 25814

South Korean Chips: INTERVIEW-S.Korea chipmakers may face R&D shortage By Yoo Choon-sik SEOUL, April 10 (Reuters) - South Korea's economic crisis may delay research and development by its computer chip makers, an executive at the Korea Semiconductor Industry Association told Reuters on Friday. ''Local companies have been delaying capital spending under the IMF regime but the impact will not be big because they have completed major investment projects,'' Kim Chi-luck, president of the association, said in an interview. ''However, if they delayed R&D spending for a long time, it may pose a big problem,'' he said. South Korea's three major chipmakers, affiliated with top business conglomerates, or chaebols, have been putting some of their spending plans on hold, mainly due to funding problems. Kim said overseas borrowing by South Korean chipmakers would be virtually impossible for the time being until their credit ratings are raised. International credit rating agencies have kept ratings on South Korea and its companies below the investment grade since the country's financial crisis surfaced late last year. The crisis, sparked by a string of corporate failures, has led to the country's acceptance of a record $58.35 billion bailout package led by the International Monetary Fund. Kim said the nation's underdeveloped technological infrastructure, such as support from state-run or independent research bodies, would also force chipmakers to try harder to keep up with their foreign rivals. ''An early establishment of technology infrastructure is very important and that will decide whether our chipmaking industry can leap forward again,'' said Kim. Kim said the United States had been abusing anti-dumping regulations to defend its industry and that he would continue to try to correct these practices. ''(They) are making a bad use of their domestic law and my longstanding stance is that their anti-dumping rules should be redefined,'' Kim said. South Korea's Hyundai Electronics Industries Co (00660.KS) and LG Semicon Co (29890.KS) are awaiting a final ruling from the U.S. Department of Commerce on dumping charges over sales of dynamic random access memory (DRAM) chips -- components in personal computers. He said he was opposed to a general criticism by local media against overseas manufacturing investments and that such projects should instead be encouraged. ''Overseas semiconductor (manufacturing) investment is absolutely necessary to secure cutting-edge technologies, maintain markets and prevent trade disputes,'' Kim said. Meanwhile, a position paper from the association dismissed as groundless concerns raised in the United States that South Korea should not use aid loans offered under the IMF-led rescue package to bail out its semiconductor industry. ''Korea agrees. The IMF loan will be used to repay foreign debts and increase Korea's foreign currency reserves and not to bail out or subsidise the semiconductor industry,'' it said. Kim said the world's major chipmakers should take joint action against ''remarking'' -- a practice of marking low-grade chips with a rival's logo and distributing them. He said he planned to raise the issue when he attends a meeting of the World Semiconductor Council later this month.

To: RFF who wrote (11552)	4/10/1998 2:31:00 PM
From: Moonray	Read Replies (1) \| Respond to of 25814

Mr. Beach (or is it Mr. bumm?), I shall enter your contest at a later date. Since you said we have until the end of the month, I elect to wait until this quarter's earnings are out. I feel that this will give me a better handle on the stock price. If you click on "Earnings" at the bottom of this posting you will see that shane forbes has said that this will be April 23rd- After Market Closes according to the Company Web Site. o~~~ O