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To: DJBEINO who wrote (4414)	12/30/1998 10:11:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

12-31-98 Chipmakers' merger may violate U.S. antitrust law, ministry says The proposed merger of Hyundai Electronics and LG Semicon, both computer chipmakers, could stir up a trade dispute with the United States, the Ministry of Foreign Affairs and Trade said yesterday. In a report on the nation's mid- and long-term trade policy, the ministry said that the "big deal" merger could become a target of the U.S. antitrust law. Under its antitrust act, the United States takes punitive measures against corporate consolidations at home and abroad if they are deemed to run counter to competition in the U.S. market. The U.S. market is one of the largest markets to which Korean chipmakers have been actively exporting their goods. "It may be possible for the U.S. government to make an extra-territorial application of its antitrust act to the Korean chipmakers' merger," the report said. Korean chip makers, including Hyundai Electronics and LG Semicon, have nearly a 50 percent share of the world memory chip market. The ministry said the Korean chipmakers' share is likely to increase as some Japanese companies are closing factories and some Taiwanese corporations are giving up production. In its policy proposal for the 2000-2005 period, the ministry called on the government to prepare for a free trade agreement (FTA) with North Korea. It urged the government to make efforts to reach a tentative inter-Korea accord before an FTA is concluded in the long run. To facilitate inter-Korean economic cooperation, the government is being urged to build on infrastructure for direct trade with and investment in North Korea. The proposed infrastructure projects include those for transportation between South and North Korea, distribution centers and communication facilities. The ministry also recommended that the government persuade North Korea to join the World Trade Organization and other economic cooperation bodies.