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Slump in S Korea chip firmsOne of South Korea's top semiconductor makers, LG SemiconLtd., reported a net loss of 249.1 billion won 185 ...

Slump in S Korea chip firms

One of South Korea8217;s top semiconductor makers, LG SemiconLtd., reported a net loss of 249.1 billion won 185 million in the six months to June amid a global slump in microchip demand. The loss reversed a 1997 first half proft of 16 billion won. But LG Semicon said its sales rose to 1.21 trillion won 903 million from 849.3 billion won a year earlier. The company said the loss in the first half reflected the prolonged drop in demand in the semiconductor industry and falling microchip prices.

LG Semicon a week ago suspended production at two of its plants for a week in a bid to combat the worldwide glut of microchips. It was the first time that the firm had suspended production. Other microchip makers in South Korea, one of the world8217;s major producers of the key computer components, are also feeling the heat of the global downturn.

Samsung Electronics Co. Ltd. SEC will on Saturday also halt production of microchips for seven days until August 22, its thirdsuspension since June. SEC, an affiliate of the giant Samsung Group, has launched a desperate campaign to curb price falls of semiconductors.

Thai Govt nationalises banks

The Central Bank of Thailand nationalised two small banks and five finance firms as a part of comprehensive package to clean up the country8217;s ailing financial sector. In an early morning announcement, central bank deputy governor Kitti Pipatpongpibul said the institutions had failed to recapitalise and were saddled with high non -performing loans. The banks concerned were Laem Thong Bank Plc. and the Union Bank of Bangkok Plc. The Finance firms were Dhana Siam Finance Plc., First City Investment Plc., IFCT Finance Plc., Vajiradhanathun Finance Co. Ltd. and Thai Summit Finance and Securities Ltd.

Philippines rejects job creation plea

President Joseph Estrada8217;s Chief aide on Friday rejected proposals by big business that the government create emergency employment for tens of thousands of Philippine workers thrown out ofwork due to the Asian Financial crisis.

quot;That looks easy to do,quot; Executive Secretary Ronaldo Zamora told reporters.quot;But that is not part of the solution because these things do not last and the money will run out. You cannot just make work, you have to have investment,quot; he added.

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Prominent business leaders have been urging Estrada to implement labor-intensive schemes such as ditch-digging as a form of safety net amid slowing economic growth this year.

The labor department said on Thursday that at least 83,058 workers are expected to lose their jobs in the 10 months to October.The department said 1,606 establishments resorted to closures or retrenchments in the first half while 123 are expected to close down or retrench from July 1 to October 30.