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LG-Hyundai still in merger stasis

Pythonesque air affects new chip company

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Under pressure from the South Korean government, the country's five biggest chaebols have now agreed to sort out their managerial differences over the re-allocation of business units. But LG and Hyundai are still locked in a bitter struggle over which firm will have the controlling interest in the merged chip company they propose. According to Asian reports, Hyundai, Samsung, Daewoo, LG and SK will now complete their plans by October 1 -- except for semiconductors. The proposed merged semiconductor company is now becoming a major source of embarrassment for the South Korean company, especially after it emerged that both the European Union and the US may invoke anti-trust laws to investigate the deal. Further, both LG and Hyundai were faced with anti-dumping duties in the US at the beginning of this month, as reported here. The European Union is still investigating whether LG and Hyundai will be faced with increased tariffs. ®

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