Hyundai unit spin off will retard LG merger

The long-postponed merger between South Korea companies LG and Hyundai looked further off than ever today. Hyundai has made a decision to beef up its chip production and dump other computer units, including its LCD and telecomms business. It will also drop its notebook business. While that will go some way towards appeasing government investigators and banks, Hyundai's decision is bound to antagonise LG. The two chaebols (family concerns) are in stalemate over a proposed new company which would consolidate both of their chip business into one unit. At issue is which would have the controlling equity in such a company. The South Korean government has attempted to appoint a third party to look after the affairs of such a company. ® Click here for more stories