“Strategic Affiliation between Samsung Electronics and Hynix Is Desirable”

Shin Kuk Hwan, minister of Industry and Resources (MIR) stated on 20th, "it is desirable to maintain co-operation between Samsung electronics and Hynix like strategic affiliation in semiconductors."

Therefore it is estimated that sale negotiation between Hynix and U.S. Micron technology might get stirred.

Shin minister said at breakfast conference by Korea semiconductor industry cooperation that was held at Marriott Hotel, Seoul and instructed, "two companies should contribute to Korean semiconductor industry through cooperation."

However, realizing that his speech caused stir, clarified after the conference, saying, "it meant that the two companies should co-operate in the matter related to export price of semi-conductors."

MIR official explained as well, "minister`s speech is not for `strategic affiliation` at the level of reformation like sale to Samsung electronics but for co-operation in the field of fundamental technology, co-development, which is not related to reformation."

With regard to this, Lee Yun Woo, chairman of semi-conductor department in Samsung electronics said, "we haven`t discussed the strategic affiliation with Hynix in today`s meeting."

And creditor group of Hynix showed the response, "although it doesn`t have direct relation with sale negotiation with Micron, the affiliation between two enterprises has very affirmative effect."

On the other hand, Park Jong Sub, chairman of Hynix said ahead of conference, "Creditor group will arrange modified negotiation plan within this week, and in case of not reaching an agreement by the end of this month, the negotiation might be broken off."

Yeon-Su Sin ysshin@donga.com · Young-Hae Choi yhchoi65@donga.com