3 Year Long Business Swap between Hynix and LG Semiconductors completes

As Hynix Semiconductor refunds the unpaid of the amount of the acquisition of LG Semiconductor by 2nd of July, all of the process of big deal (large scaled business exchange) will be cleared.

At 1st of July, Hynix announced that Hynix would refund 111.5 bullion Won unpaid that was part of the amount of 2.56 trillion Won to be paid to LG Semiconductor in accordance with the big deal agreement in June of 1999.

Both parts agreed that Hynix would take over LG Semiconductor in the form of the acceptance share and issue a promissory note to.

LG Electronics already has discounted and withdrawn the promissory from the bank without additional capital inputs.

So, the big deal of semiconductor, launched by the government to solve the excessive investment and to increase international competitiveness, completed. However the meaning of big deal has faded away so much because Hynix fall in cash flow trap.

A reliable source mentioned that Hynix try to sell non-memory facilities in Kumi of Kyungbuk to LG Electronics so call ‘reverse business swap’, but LG Electronics announced clearly ‘no’.

sunshade@donga.com