ID :
34500
Mon, 12/08/2008 - 12:58
Auther :
Shortlink :
https://www.oananews.org//node/34500
The shortlink copeid
S. Korean gov't has no plans to help Hynix: official
(ATTN: UPDATES with more details in paras 2-4; ADDS with new information from para 6)
SEOUL, Dec. 8 (Yonhap) -- The South Korean government has no plans to directly
help Hynix Semiconductor Inc., which is experiencing hard times in the face of a
sharp drop in memory chip prices, a senior policymaker said Monday.
In a meeting with foreign correspondents in Seoul, Knowledge Economy Minister Lee
Youn-ho said any support given to the world's second largest chipmaker will be
decided by creditors.
He said that while details have not been formally announced, creditors have
agreed in principle to help Hynix because it makes sound business sense.
"The size and extent of the support will be decided by the creditors," the
minister said, adding that the government could review ways to indirectly help
the company only if banks and other lenders backtracked on the support plan.
Hynix reported earnings of around 2 trillion won (US$1.36 billion) in both 2005
and 2006, but began struggling in 2007 due to a weakened global semiconductor
market. Losses may exceed 1 trillion won this year.
The government said while the company was losing money, it still remained
relatively healthy compared to rivals in Taiwan and if it is able to stay afloat,
should be in a good position to grab more global market share down the road.
It also said that supporting the company would conflict with World Trade
Organization rules and trigger disputes with trading partners.
Lee, meanwhile, said that while Seoul is aiming to pull off economic growth
exceeding 3 percent in 2009, he hinted that the target may not be reached.
"If the global economy recovers next year, South Korea's GDP could rise by more
than 3 percent annually, although it may not reach this level if conditions
deteriorate," the official said.
He stressed that in the new year, the government will take all necessary steps to
help bolster exports that will include providing greater funding for small- and
medium- sized exporters and assisting international marketing efforts by domestic
companies.
The former executive of the Federation of Korean Industries said the government
will invite 1,000 foreign buyers in January so deals can be struck with local
companies.
The remarks come after the government announced on Dec. 1 that the country's
exports nosedived 18.3 percent annually last month to US$29.26 billion with the
monthly surplus reaching a mere $297 million. In the first 11 months of this year
the country's trade deficit reached $13.34 billion.
yonngong@yna.co.kr
(END)
SEOUL, Dec. 8 (Yonhap) -- The South Korean government has no plans to directly
help Hynix Semiconductor Inc., which is experiencing hard times in the face of a
sharp drop in memory chip prices, a senior policymaker said Monday.
In a meeting with foreign correspondents in Seoul, Knowledge Economy Minister Lee
Youn-ho said any support given to the world's second largest chipmaker will be
decided by creditors.
He said that while details have not been formally announced, creditors have
agreed in principle to help Hynix because it makes sound business sense.
"The size and extent of the support will be decided by the creditors," the
minister said, adding that the government could review ways to indirectly help
the company only if banks and other lenders backtracked on the support plan.
Hynix reported earnings of around 2 trillion won (US$1.36 billion) in both 2005
and 2006, but began struggling in 2007 due to a weakened global semiconductor
market. Losses may exceed 1 trillion won this year.
The government said while the company was losing money, it still remained
relatively healthy compared to rivals in Taiwan and if it is able to stay afloat,
should be in a good position to grab more global market share down the road.
It also said that supporting the company would conflict with World Trade
Organization rules and trigger disputes with trading partners.
Lee, meanwhile, said that while Seoul is aiming to pull off economic growth
exceeding 3 percent in 2009, he hinted that the target may not be reached.
"If the global economy recovers next year, South Korea's GDP could rise by more
than 3 percent annually, although it may not reach this level if conditions
deteriorate," the official said.
He stressed that in the new year, the government will take all necessary steps to
help bolster exports that will include providing greater funding for small- and
medium- sized exporters and assisting international marketing efforts by domestic
companies.
The former executive of the Federation of Korean Industries said the government
will invite 1,000 foreign buyers in January so deals can be struck with local
companies.
The remarks come after the government announced on Dec. 1 that the country's
exports nosedived 18.3 percent annually last month to US$29.26 billion with the
monthly surplus reaching a mere $297 million. In the first 11 months of this year
the country's trade deficit reached $13.34 billion.
yonngong@yna.co.kr
(END)
