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Journalism of Courage
Computer gian IBM has developed a new formula for encrypting sensitive data transmitted on the Internet which it says will be nearly impossible to crack.
The model, based on a problem that defied mathematicians for 150 years, does not yet have concrete applications, International Business Machines said in a statement.
The person who wants to protect a message sent over the Internet uses a program that automatically scrambles the data using a quot;public keyquot;, a publicly known series of codes. Recipients then unscramble them, using their complementary and secret quot;private keysquot;. The problem, which was impossible to solve until now, is that this type of program does not always generate keys that are difficult to crack, offering weak links in the coding.
US telecom rates cut
The Federal Communications Commission voted to reduce the access charges long-distance telephone companies pay to have their calls placed onto local networks. MCI Communications Corp. said the reduction amounts to 1.7 billion in 1997. Over five years, the plan is expected to reduce access charges by 18.5 billion. The decision will take effect from July 1, the FCC said. The program is part of a plan implementing telecommunications deregulation while guaranteeing universal access and allowing schools to be connected to the Internet. MCI President Timothy Price said quot;today8217;s announcement by the FCC of an immediate 1.7 billion net reduction in interstate access charges is a first step towards eliminating the billions of dollars of unjustified overcharges.quot;
S. Korea8217;s textile giant goes bankrupt
South Korea8217;s biggest woollen textile maker, Yusung Co. was declared bankrupt by its main creditor, dealing another blow to banks still reeling from the collapse of Hanbo and Sammi groups. quot;Yusung failed to honor a total of 270 million won 302,000 worth of promissory notes by the close of business yesterday, so we declared it insolvent,quot; a spokesman for Commercial Bank of Korea said.
In South Korea, if companies failed to meet the second deadline for repayments,they are automatically declared bankrupt. The bankruptcy announcement followed the company8217;s application on Wednesday for court protection to freeze its assets and liabilities. Yusung, capitalized at 16.7 million, cited worsening cash flow problems and mounting financial costs for its resort to court protection. Trading in shares of Yusung was suspended on the Korea Stock Exchange on Wednesday, with investors taking another failure of a listed firm with a sharp 1.8 percent drop in the benchmark index on Wednesday.
