Korea surprised by WSC proposal

Korea surprised by WSC proposal
David Manners Korea was bowled a googly at last week’s World Semiconductor Council (WSC) meeting in Carlsbad, California when the Americans introduced an untabled, last minute call for governments to forbid Korea to use IMF bail-out money to make chips. The Korean delegation was upset by the unexpected proposal, said they had not been given time to prepare a reply, and voted against it. The resolution was voted through by the other delegations and will be put to the four governments involved – the US, Japan, Europe and Korea. On June 12, at the Government Consultative Meeting in Tokyo, the four governments will give their response. By then the money may well be spent. It is believed that the Korean government could use $700m of IMF funds to alleviate the debt, and buy the shares of hard-pressed companies. The US delegation contained Micron Technology CEO Steve Appleton who has testified before the US Congress on the issue of using IMF funds to bail out chip companies. The Americans said they were surprised that the Koreans did not support the resolution because the Korean chip makers have already claimed they won’t be receiving IMF money. The WSC meeting also agreed to invite Taiwan to join, on condition that it drops its tariffs on semiconductors, and postponed deciding on Canada’s application to join the WSC.


Leave a Reply

Your email address will not be published. Required fields are marked *

*