U.S. Presses Korean Government to Stop Financial Support for Hynix

Jin Nyum, vice-Prime Minister and economy and finance minister announced on the 31st, ``If we cannot make an agreement with the creditor counsel, Hynix semiconductor would be under court`s management.``

Jin vice Prime Minister said in a radio program, ``The creditor counsel will support Hynix if it sees any hope for Hynix, but the slow down in semiconductor and other factors can lead them to another decision.``

The president of Hanvit Bank, Lee Duck-Hoon, said, ``If the creditor counsel agrees to support Hinix, we can change the current debt of Hynix into investment. We can also provide more financial aid.`` But the president of Shin Han Bank, Lee In-Hoo said, ``Before all financial support, we should make a right judgment if Hynix can survive or not, and more financial aid would be difficult.`` Accordingly, the final decision that will be made in the meeting on the 3rd would be very difficult.

Currently, the creditor counsel is searching for a plan for the survival of Hynix by reviewing a plan to support 6 trillion and 700 billion won and additional 2 ~3 trillion of investment. The president of Hynix semiconductor Park Jong-Sup pledged for a financial support, saying ``if the court`s control is activated, the value of bank bonds would fall also.``

Meanwhile, Tomas Harvard new U.S. ambassador in Korea insisted on the 30th, ``There are various kind of support to revive Hynix.`` In response to this, Lee Duck-Hoon president of Hanbvit bank said, ``It does not matter since the creditor counsel is independently searching a support plan to minimize our own financial damage.``

British Financial Times reported that U.S. government is pressing Korean government to stop to support Hynix. A high ranking official of U.S. administration said, `` Korean government is not keeping its promise made in IMF period to free the market decreasing government control.`` The Financial Times reported, ``This warning was delivered to the most high ranking official circles in Korea.``

Lee Na-Yeon larosa@donga.com