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To: getgo234 who wrote (38078)	9/3/1998 9:59:00 AM
From: Bipin Prasad	Read Replies (1) \| Respond to of 53903

Hyundai Electronics, LG Semicon To Merge as Chaebol Restructure Dow Jones Newswires SEOUL, South Korea -- Hyundai Electronics Industry Co. and LG Semicon Co. have agreed to merge as part of broader push to reorganize the country's conglomerates, the Federation of Korean Industry said Thursday. The merger of the two computer-chipmaking concerns is part of efforts by their parent companies, Hyundai Group and LG Group, to restructure their sprawling businesses to overcome the current economic slump, said the Korean Federation of Industries, a lobby of conglomerates. Combined, Hyundai and LG supply 18% of the world's computer-memory chips. Details of the deal weren't known. The federation said the two companies will continue to meet to discuss the details, including equity holdings of the merged chip company. Mergers Pushed by Seoul South Korean President Kim Dae Jung has insisted the country's five biggest conglomerates agree to swap or merge major overlapping subsidiaries. He has even threatened to withhold loans from state-controlled banks unless the bloated, debt-ridden conglomerates restructure. South Korean conglomerates, known as chaebol, have been accused of overexpanding and over-diversifying during the country's boom years, sowing the seeds of the financial crisis. The industry shake-up involves the aerospace, train-manufacturing, power-plant and oil-refinery subsidiaries of the nation's top five conglomerates -- Samsung Group, Hyundai Group, Daewoo Group, LG Group and SK Group. The International Monetary Fund demanded a reorganization of the conglomerates when it granted South Korea a record $58.35 billion bailout package in December. Mr. Kim said the restructuring was essential to create a leaner, more competitive industrial sector and restore foreign investors' confidence in South Korea's battered economy. Among other restructuring plans announced Thursday, Hyundai Oil Refinery Co. will take over debt-ridden Hanwha Energy Co. Hyundai Oil controls about 10% of the local oil market while Hanwha commands about 7%. The federation also said that Hyundai, Daewoo, and Samsung will merge their aerospace units. The consolidated company will invite foreign capital in order to bolster its international competitiveness. Samsung and Hyundai will consolidate their petrochemical plants at the Daesan complex before the unified company invites foreign investment, the federation said. Meanwhile, in the troubled automobile industry, three auto makers -- Samsung Motors Inc., Hyundai Motor Co., and Daewoo Motor Co. -- will discuss restructuring if the international auction of Kia Motors Corp. is aborted again, the federation said. The first auction of Kia Motors was aborted Tuesday because bidders demanded debt write-offs. Also, Hyundai Group, Daewoo Group and Hanjin Group will consolidate their train-manufacturing units. And Hyundai Heavy Industries Co. and Korea Heavy Industries & Construction Corp. will consolidate their power-plant businesses.