The planned merger between semiconductor makers LG Semicon and Hyundai Electronics Industries Co has hit yet more trouble. LG has refused to continue with merger talks until Hyundai agrees to pay for the company in cash and guarantees the jobs of all 9,600 employees. According to Korean press reports, LG is demanding that Hyundai group retains LG’s current workforce for at least 5 years and treats the employees fairly. LG is also saying that Hyundai should accept its labor unions as staff representatives. Hyundai is reported to be considering LG’s demands but looks unlikely to accept all of them as they stand. LG’s stance is also unlikely to please the South Korean government which embarked on plans to restructure the country’s ‘big five’ chaebols with the intention of stopping the massive amount of industrial duplication between them. Meanwhile, LG’s Semicon’s sister company, LG Electronics Co has announced plans to open a plant manufacturing its 17-inch braun tube monitor – the Flatron. LG is currently one of the few companies able to manufacture the braun tube technology. The company also plans to produce 19-inch and 21-inch versions of the monitors later in 1999.
