Feeds

Updated: LG Semicon falls to Hyundai

Impasse over but row over money begins

  • alert
  • submit to reddit

Internet Security Threat Report 2014

The long standing refusal of LG to cooperate with the South Korean government came to an abrupt end today, when the company said it will sell its chip division to Hyundai. LG Semicon will become part of Hyundai Electronics, and according to reports all the workers will transfer from the former to the latter. (Story: LG Semicon hanging on Seoul thread) The deal spells a victory for the South Korean government, determined that the big five chaebols (family concerns), should rid themselves of their uncompetitive units. Last month, US consultancy Arthur D Little, recommended that a merged chip company should be formed with Hyundai having 70 per cent of the equity. LG resisted the decision, threatened to sue ADL and hit out at what it claimed was intereference in its business. But the South Korean government reacted with fury and creditor banks threatened to pull the rug from under LG Semicon, saddled with debt and loans. The Korea Herald will report in tomorrow's edition of its newspaper that LG is now scrapping with Hyundai over the amount of money it wants. The newspaper will say that LG wants $4.34 billion including a 60 per cent share in LG Semicon. But Hyundai thinks that amount of money is far too much. The negotiations are supposed to be finalised by the end of the month. According to the Herald, Hyundai will have to drastically restruct to raise cash, and there will no write offs of debts.®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.