Semicon Merger Still Mired in Controversy

Amidst heavy pressure from the government, high ranking executives from Hyundai and LG met on December 29 to discuss the troubled semiconductor big deal.
Kang Yu Sik, head of LG's restructuring center, requested that each company be given equal shares in the merger. He requested another evaluation from a different consulting company but no agreements were reached during the meeting.
Kim Woo Jung, the president of the Federation of Korean Industries (FKI), said, 'If Hyundai and LG bring forth their respective business plans and management proposals, FKI will mediate the process.'
LG Semiconductors convened a temporary general meeting of shareholders and decided that it will hand over its Liquid Crystal Display division to the newly established LG-LCD as part of its restructuring measures.
Chung Tae Su, the director of the Korean branch of Arthur D Little Consultants said, 'The essence of our report is not 'Which company is better' but rather that 'Integration is better'. But, it naturally emphasizes the owners' management rights.'