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To: robert w fain who wrote (41747)	12/28/1998 10:08:00 AM
From: DJBEINO	Respond to of 53903

Creditors to Take Punitive Action Against LG 12/28, 18:25 Creditors of LG Semicon yesterday agreed to stop extending fresh loans to the memory chip maker while recalling outstanding loans for its decision to back down from a merger deal with Hyundai Electronics Ind. Co. Some 28 creditor financial institutions of the LG Group and the Hyundai Group met Monday afternoon to work out financial sanctions against LG Semicon. It will be the first time that creditors have ever taken joint action against any unit of the nation's five largest conglomerates. Industry sources said that it will be impossible for LG Semicon to gain access to financial resources if the decision is put into action. Commercial Bank of Korea (CBK) and Korea Exchange Bank (KEB), creditor banks for Hyundai and LG, said creditor banks agreed to stop lending to LG Semicon and to collect outstanding loans. The two banks plan to auction off the properties LG offered as collateral in order to retrieve their loans to the firm if it fails to pay it debts. ''We creditors have decided to take punitive steps against LG Semicon because the company has refused to accept the agreed merger deal with Hyundai,'' said a KEB manager. The LG Group and the Hyundai Group reached an agreement in September to set up a merged semiconductor unit in a business swap to resolve excessive investment and overcapacity. They have since been at odds over who will take over the controlling stake in the merged firm. The dispute came to a head last Thursday when U.S. consultants Arthur D. Little (ADL) chose Hyundai Electronics as the winner of the dispute. ADL recommended that Hyundai be awarded the 70 percent stake in what would become the world's second-largest semiconductor firm while giving the remaining 30 percent to LG. The battle intensified over the weekend as the LG Group revealed Sunday a plan to file a lawsuit against ADL for ''arbitrary and biased evaluations using distorted data.'' Against this backdrop, the government made it clear that punitive sanctions will be imposed on the LG Group. The Financial Supervisory Commission (FSC) requested that creditor banks take action against LG Semicon in order to convince officials to change their minds. ''LG will have to pay the price if it continues to refuse to accept the ADL's recommendation on managerial rights in a joint semiconductor unit,'' said an FSC official. At the same time, creditors plan to make efforts to avoid a head-on confrontation with the LG Group and open the way for a last-minute settlement of the dispute. Major creditor banks are still expressing hopes that the rival groups will narrow their differences over the management control as soon as possible. LG Semicon was found to have 4 trillion won in long-term debt and foreign currency loans as of June and 480 billion won in short-term debt. The firm had also issued 730 million worth of commercial papers.

To: robert w fain who wrote (41747)	12/28/1998 10:22:00 AM
From: Bipin Prasad	Read Replies (1) \| Respond to of 53903

If you think "Goverments have subsided these companies " = "less competent", think again. MU gets perks from states, so do TI, INTC,..., you name it. TX even gave perks to SamSung last summer. Only small fish don't get perks from government! My point is that your claim that SamSung is less competent than MU is false. If you look at SamSung's balance and tech power, you will quickly find out who is superior in Semi btn SamSung and MU. later, InSook