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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: phbolton who wrote (45649)	5/7/1999 12:35:00 PM
From: DJBEINO	Read Replies (2) \| Respond to of 53903

Commerce Department voices concern about Korean chip bailouts A service of Semiconductor Business News, CMP Media Inc. Story posted 9 a.m. EST/6 a.m., PST, 5/7/99 By Jack Robertson WASHINGTON -- Commerce Secretary William Daley last week wrote Congress that the U.S. government is concerned about the chip merger between Hyundai Electronics Industries Co. and LG Semicon getting unfair financial incentives. In a letter to concerned legislators, including Sen. Michael Crapo (R-Ida.), Secretary Daley said, "We are very concerned about press reports concerning possible incentives being provided to Korean semiconductor companies to encourage them to undertake corporate restructuring. "We have been closely monitoring the proposed (semiconductor) merger and included the issue in our most recent report to Congress on (Korean) subsidies enforcement," the letter continued. "In response, the Korean Government has agreed to provide information about the merger to help address the concerns we have raised." The cabinet official said, "While in Korea in March, I raised this issue with the Korean minister of commerce and industry and with the minister of state for trade, and underscored the importance that Korea observe its World Trade Organization obligations and other international commitments. "The ministers assured me that no government subsidies are involved in the merger," he wrote. Sen. Crapo last week wrote Treasury Secretary Robert Rubin, charging that the International Monetary Fund isn't monitoring the Hyundai-LG chip merger to ensure that no IMF funds are used to bail out Korean chip companies. He said IMF officials told a recent Senate Banking Committee hearing that they aren't monitoring the Hyundai-LG Semicon merger. "I am troubled by the IMF's ability to assure that the commitments [not to bail out semiconductor companies] are being met if it is not monitoring the merger deals," he said. Separately, Micron Technology Inc. has also asked the Commerce and Treasury departments to investigate the restructuring of debt for Anam Semiconductor Inc. to determine if IMF money is being used to bail out that Korean chip maker (see May 6 story). Sen. Crapo represents the state in which Micron Technology has its headquarters.