Feeds

Creditors get tough with LG Semicon

Korean spat takes on European dimension as banks pull rugs

  • alert
  • submit to reddit

The essential guide to IT transformation

Reports from South Korea said that financial sanctions will now be imposed on LG after its refusal to accept a merger deal in which Hyundai will have 70 per cent of a new semiconductor company. LG (formerly Lucky Goldstar) is one of the top five chaebols (family concerns) in South Korea. The others are SK, Hyundai, Daewoo and Samsung. According to English language newspaper The Korea Times, 28 institutions will recall loans from LG Semicon during the course of this week. And the action could take on a European dimension very shortly, as LG has bridge loans of over 80 billion won. As exclusively reported here on the 11th of December, LG has already rationalised its structure in the UK. The action, prompted by the South Korean government, furious at LG’s intransigence on the deal, was precipitated when the Commercial Bank of Korea and the Korea Exchange Bank refused to loan LG Semicon any money and proposed selling off collateral unless it pays its debts. Faced with this action, LG has been attempting to accumulate foreign dollars to bolster its position but it is unlikely to be able to stall for much longer. LG Semicon has a number of fab plants worldwide, including one in Wales, which is partly funded by the Welsh Office, a department of the UK government. That government department is now bound to be asked how much UK tax payers’ money is being used to bolster LG Semicon’s position. (Story: LG caught in middle of UK inward investment row) ® Recent related stories LG threatens to sue Arthur D Little Hyundai, LG Semicon deal on Chaebols make restructuring decisions South Korean president enters LG Semicon, Hyundai spat Arbitration panel to rescue LG, Hyundai from anti-dumping charges

5 things you didn’t know about cloud backup

More from The Register

next story
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?