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(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

News from NET and COM '99

  • Korea’s LG Semicon Re-Starts DRAM Plant Operation
  • February 11, 1999 (TOKYO) — LG Semicon Co., Ltd. of Korea started to operate its dynamic random access memory (DRAM) plant on Feb. 8 following a labor dispute.
    Sun Byung-Don, the company’s executive vice president in charge of development and production of DRAM at Korea’s Cheongju plant, told a reporter from IP Japan (a Nikkei business publication) that normal operations have begun at all the microchip production areas of the company.

    Korea’s Cheongju plant is LG Semicon’s major production base for 64Mb DRAMs. The production there was interrupted from Jan. 24 to Feb. 7 due to the conflict between LG management and labor triggered by the merger and consolidation with Korea’s Hyundai Electronics Industries Co., Ltd.

    In the course of the negotiations between LG’s labor and management, it was decided on Feb. 7 that when normal operations resumed, remuneration will be paid on a weekly basis, in addition to a bonus that is equivalent to six months’ pay. That led to the resumption of operations on Feb. 8. The result-oriented remuneration on a weekly basis is to be paid when the set business objective is achieved.

    The interruption of operation at LG constituted a big obstacle regardless of the success or failure of the merger and consolidation of LG Semicon and Korea’s Hyundai Electronics. Even if the transfer of stock between LG Semicon and Hyundai is completed, and merger and consolidation is duly achieved in terms of documents, unless the present production base of LG operates fully, the integrated new company would not have been able to conduct business normally.

    At present, Hyundai and LG are actively pressing forth the negotiations to conclude the contract for transfer of stock in order to establish the new company.

    Related stories:
    LG Semicon DRAM Plant May Resume Operations Feb. 6
    Hyundai, LG DRAM Merger Contract to be Concluded in January

    (IP Japan Site)

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