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More chaebol trouble hits South Korea

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A bitter row has broken out between mighty South Korean chaebols Samsung and Daewoo over the proposed transfer of their car and electronic industries. Over last weekend, South Korea president Kim fired one of his ministers for objecting to Samsung exchanging its auto division for Daewoo's electronic division. And Daweoo staff upped the ante by taking out an advert saying they blocked the transfer of the subsidiaries. Both Samsung Motors and LG Electronics employees have gone on strike. The intransigent position Daewoo has adopted mirrors that taken by LG two weeks ago, which has so far resisted all attempts to allow US Wall Street consultant Arthur Little to broker a deal. LG and Hyundai are supposed to sort its deal out by the end of this week. And in the latest twist, South Korea president Kim appointed a Samsung executive Namgoong Suek as the minister for information and communications, the Korea Herald reported. We here at The Register wonder just how long of all this can go on... ®

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