Export Firms Face "Y2K" Problem

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Export Firms Face "Y2K" Problem

A cellular phone equipment company confronted unexpected obstacles during negotiations with a Chinese company. The Chinese company required the company to give a 'Y2K Confirmation' which guarentees the equipment will operate without any problems after January 1, 2000.
The Chinese side argued that any loss from 'Y2K' should be compensated fully by the Korean company. The phone equipment company maintained that it is difficult to determine where the responsibility would lie because communication equipment consists of many parts made by various companies. Negotiations have not yet been concluded.
Many export companies are confronting the 'Y2K Confirmations' issue. Many companies including Samsung Electronics, Daewoo Motors, and LG Chemicals received enquiries as to whether or not they can confirm countermeasures to the Y2K. Insurance companies also received many similar requests as well.
Daewoo Motors offered a guarentee to the Park Davis Co., an Australian motor import company, after four months of research. LG Chemicals also received similar concerns from a French import company.
Therefore, the Ministry of Information and Communication (MOIC) plans to form a 'Korea Y2K Confirmation Center' to solve this problem. A source at the MOIC said, 'Until now, only certain manufacturing and financial companies have encountered these problems and started to deal with them but medium and small size companies will meet the same obstacle by the beginning of next year.'
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