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LG Electronics, Earns A Fortune Of 30 Billion Won

Posted September. 29, 2002 22:53,   


LG Electronics got ‘lucky’ to receive huge compensation from the U.S government because of its U.S sister company Zenith.

According to LG electronics on 29th, Zenith is likely to receive 238 thousand dollars (for 2002) as custom duty for dumping, which the U.S Custom office imposed on Japanese and Taiwanese TV manufacturing firms, in succession to 244 billion dollars (for 2001) last month.

The U.S government effected ‘Bud revision’ in October, 2000, in which custom duty for dumping charged from foreign export firms would be distributed would be distributed to damaged firms in the U.S.

Zenith, whose management LG had taken over in the year 1995, was approved for getting damages, due to export dumping of Japanese and Taiwanese firms since 1970s and it received reserve of custom duty as compensation. This money, following evaluation of equity method, will be calculated as special profit for LG electronics in closing accounts this year end, therefore, it would help in improving the profit of the company.

However, industry prospects that same cases might not occur again as Bud revision is facing crisis of withdrawal because other nations have instituted a lawsuit in WTO.

Yeon-Su Shin ysshin@donga.com