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Hyundai-LG talks collapse in disagreement

Debacle means punishment by government likely

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A proposed merger of Hyundai and LG's semiconductor businesses now looks on the brink of collapse, according to the South Korean press. A report in the Korea Herald said that both companies have failed to reach agreement on a third party arbitrator to organise the merger. That means that both companies will be punished by the South Korean government. The chaebols (family outfits) had until November 30 to sort their differences. Possible punishments include forced restructuring and the severing of credit lines, said the Herald. ®

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