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To: Kealoha who wrote (57367)	6/6/1998 8:41:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Kealoha - Re: " Hyundai Samsung and LG" Here is one recent report. The IMF, using AMERICAN TAXPAYER's MONEY, will be giving money to the Korean Government who will then be bailing out the Korean Semis. I think if the FTC officials bust up Intel and Microsoft, they will be rewarded with lifetime positions on the IMF to help transfer MORE AMERICAN MONEY to our Korean competitors. Paul {=================} Korean Government Bails Out Chip Makers by Staff, Semiconductor Business News June 03, 1998 (07:26 A.M.) techweb.com The Korean government announced Monday that it is going ahead with a $4 billion, two-year program to assist exports of the 30 largest chaebols -- an action certain to intensify protests by U.S. semiconductor and original equipment manufacturer (OEM) competitors. The Koreans appeared ready to stonewall U.S. criticism, after the country's exports in May took a surprising 2.6 percent downturn to $11.4 billion from the same month a year ago. The export dip stunned the country, which had been counting on the far lower value of the won to make its products more competitive in global markets. Sources said Korean exports were hurt against competition from Japan, whose own currency has been plunging in recent weeks. In the United States, the Semiconductor Industry Association and Steve Appleton, chairman of Micron Technologies, in particular, have been vocal in recent months against any continued government funding assistance to the Korean chip makers under any guise. The U.S. industry argued it was massive Korean government-directed loans to the chaebols that funded their huge chip-capacity expansion. The SIA said any more such funding is made possible by the bailout from the International Monetary Fund (IMF), which has pumped money into the Korean economy. Government-financed export aid also tilts the playing field for Korean OEMs against U.S. rivals, especially in cellular telephone handsets and other telecommunication products, where Korea has become a major global supplier. Two months ago, when the Koreans first floated the plan to provide export financial assistance to the chaebols, the SIA took its complaints to the World Semiconductor Council, then to a meeting in April in Carlsbad, Calif. Under strong SIA pressure, the WSC agreed to send a resolution to a counterpart, the World Semiconductor Forum, consisting of four governmental bodies. The government forum meets June 12 in Tokyo, and will take up the SIA-sponsored resolution against any IMF money finding its way to the Korean chip makers. At least half of the $4 billion Korean export promotion package would be funneled through the government's export-import bank. That would appear to be the least controversial aspect of the plan, since all major industrial nations, including the United States, use comparable export-import banks in their own countries to spur exports. But another $2 billion would be slated for more vaguely specified export promotion assistance to the chaebols. Copyright 1998, CMP Media Inc.