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From: gdwoods@ix.netcom.com at @UCSD Date: 9/27/96 5:06AM *To: glokor@UCSD.EDU at @UCSD Subject: Korea News Service 9/27/96 ------------------------------------------------------------------------------- ///KOREA..DATE960927 NO.001 U.S. Companies to Participate in Korea Telecom ICIS Project American companies are to take part in KT's Integrated Customer Information Service (ICIS) project as consulting partners. According to Korean Telecom and industry sources on September 18, the companies working on the system development, LG-EDS, Samsung Data System and SsangYong Information & Communications Corp., decided to cooperate with U.S. firms such as EDS and GET. Samsung already signed a consulting contract covering a marketing support system and its application. The U.S. company will receive a consulting fee of $5 million. KT's ICIS project, which require investments of 200 billion won by the year 1999. Des: ZD000 Ref: (Hankook Kyongje Shinmun, 9/19/96;17) ///KOREA ..DATE960927 NO.002 Pressure Sensor Developed Dae Hwa Co. developed a pressure sensor, a key part of automatic control devices. The product, developed with an investment of 200 million won for two years, is used in various applications and capable of measuring pressure up to 500 kilograms per square centimeter. The company is to supply the products to Samsung Corning, Daewoo Heavy Industries and LG Electronics and is negotiating with Balcom (phonetic) of Japan on exports. The price of the new product is half that of Japanese products. The company is optimistic about strong sales in overseas markets and plans to sell senors worth 2 billion won next year. Des: ZAA00 Ref: (Hankook Kyongje Shinmun, 9/19/96;13) ///KOREA ..DATE960927 NO.003 TriGem to Invite more Foreign Investment TriGem Computer will increase its foreign ownership share to 25.66% from 19.66 now. The computer maker announced on September 18 that it requested the Security Supervisory Board to free 6% out of 7.66% owned by its U.S. partner Seico-Epson from the foreign investment limitation. The board will reportedly accept the request from the company. Des: ZC000 Ref: (Hankook Kyongje Shinmun, 9/19/96;23) ///KOREA ..DATE960927 NO.004 IPEC Eyes Domestic Market IPEC, with a 75% share in the world's CMP (chemical-mechanical polishing) equipment market, eyes at the Korean market. The president of the U.S. company recently visited Seoul to introduce the company's products to Korean companies such as the three major semiconductor makers and Anam Industrial Co. Ltd. There is growing interest in CMP equipment among Korean companies as they started to produce 64M DRAMs with a circuit width of 0.5 micron and smaller. In particular, Anam's entering the FAB business will significantly contribute to the growing CMP market here. IPEC's high productivity rate, processing 40 wafers per hour, will help Korean companies improve profits, he said. The company's production line will be put into operation at Anam, and Samsung and the company will concentrate technical personnel for the Asia/Pacific region in Korea. Des: ZAA00 Ref: (Chonja Shinmun, 9/19/96;21) ///KOREA ..DATE960927 NO.005 Kia Develops Aluminum Cylinder Block, First in the Country The company said on September 18, that it succeeded with experimental production of a cylinder block for a six-cylinder KR engine now being developed jointly with Rover of Britain. The new product, 50% lighter than existing cast iron products, reduces the total weight of a KR engine to 155 kilograms. With the new product, the weight of a passenger can be cut by 4%. The two engine models, 2.0 and 2.5 liters, will be installed in its Credos and T-3, the large passenger car model to be marketed from this November. The auto maker introduced Low Pressure Sandcasting technology for the development. Des: ZFA00 Ref: (Hankook Kyongje Shinmun, 9/19/96;12) ///KOREA ..DATE960927 NO.006 Suh Jin to Produce Engine Cam Shafts Suh Jin Industry, specialized in automotive frames, is to produce cam shafts, in a technology tie-up with a Japanese company. On September 18 the company said it signed a contract with a Japanese company to receive state-of-the-art manufacturing technology. The company will start mass production from the second half of next year with an annual capacity of 600,000 units. The company, with expected sales of 90 billion won this year, hopes to sell 5 billion won worth of engine cam shafts in 1998. Des: ZFD00 Ref: (Hankook Kyongje Shinmun, 9/10/96;13) ///KOREA ..DATE960927 NO.007 Dong Sung Metal Co. Completes Automated Engine Bearing Factory The company, an affiliate of Yoo Sung Enterprise, will produce engine parts with special plating. The company's bearings will be supplied to Korean auto makers and are expected to help improve the quality of automobile engines as well as extend the life span of engines. The joint venture of Yoo Sung Enterprise and Daido Metal of Japan plans sales of 15 billion won this year. Des: ZFD00 Ref: (Hankook Kyongje Shinmun, 9/19/96;13) ///KOREA ..DATE960927 NO.008 Three Trillion Won to be Invested for Localization of Capital Goods According to a decision by the Federation of Korean Industries (FKI) concerning localization of capital goods, 78 affiliates of 24 business conglomerates are working on the development of 9,044 different items. The project will cost 3.13 trillion won and completion is expected to create import savings of 8 trillion won a year. Though the time of development varies according to the companies, most of the development will be done by the year 2000, said FKI. The Hyundai Group is planning to develop 6,521 items, including turbo chargers for diesel engines, with an investment of 659.7 billion won and the Kia Group will pour 623.1 billion won to localize 1,346 items, including air bags. Des: ZNF00 Ref: (Hankook Kyongje Shinmun, 9/19/96;3) ///KOREA ..DATE960927 NO.009 Foreign Sysytems Integration and Consulting Firms Hurry into Domestic Market Foreign system integration and consulting companies are hurrying to enter the Korean market. According to an industry source on September 18, related companies such as CSC, Price Water House and Ernst & Young International have tied up with Korean companies, eyeing at the growing market. Computer Science Corporation (CSC), an SI company from the U.S., started a partnership with Shinwon I&C, the newly established SI affiliate of the Shinwon Group. Price Waterhouse, is working on projects targeting the Korean financial market. Following the set-up of an independent subsidiary here, EDS had its affiliate AT Carney (phonetic) also set up a local subsidiary here last year and the affiliate is actively working in the Korean market. Market prospects, that the Korean SI market will expand to high-end consulting and information technology from existing system installment and maintenance, along with a government plan to open the procurement market for government offices, are thought to attract foreign companies most. Des: ZNF00 Ref: (Chonja Shinmun, 9/19/96;1) ///KOREA ..DATE960927 NO.010 Automobile and Home Appliance Companies Delay Introduction of New Models As the industry forecasts a business recession and consumers get discouraged, automobile and home appliance companies are delaying introduction of new models. The fear of failure in an early marketing stage is the main reason of the delay. Hyundai Motor, which has planned to market its mini van this November, delayed the introduction of the new model to next January. The new model, a recreational vehicle capable of accommodating 7-12 passengers, is the first product in Hyundai's mini van business. Home appliance companies are following the same step by delaying the marketing of new models up to six months. Samsung Electronics, which announced to market a 14.2 inch liquid crystal screen TV and an 30 inch projection type TV this year, is skeptic about the introduction of these products in the market as scheduled. The trend is expected to spread to other industrial sectors. Des: ZFD00 Ref: (Maeil Kyongje Shinmun, 9/19/96;11) ///KOREA ..DATE960927 NO.11 LG Semicon to Strengthen ASIC Business The company, in an effort to bolster its ASIC business, is going to sign contracts this year with about 10 new design and system companies for long-term supply. The company also plans to diversify into telecommunications and multimedia products such as networking and set top boxes. The semiconductor maker will raise its ASIC sales percentage to 60% of total sales next year from the present 20% by increasing production of 0.5 micron ASICs which were developed late last year. For this, the company, with expected sales of 100 billion won this year and 1 trillion won in 2000, up from 70 billion won last year, will invest $2 billion in new photo mask and etching equipment. Des: ZAA00 Ref: (Chonja Shinmun, 9/20/96;21) ///KOREA ..DATE960927 NO.011 Britain Eyes Domestic Measuring Equipment Market British industry is surveying the market, targeting Korea's rapidly growing measuring equipment market. The GAMBICA delegation from eight companies is actively contacting Korean importers. Three of the companies have made agreements with Korean companies to open outlets here and five other companies will soon sign contracts for local outlets. GAMBICA is an organization of companies from this European country's measuring equipment industry. Des: ZNF00 Ref: (Chonja Shinmun, 9/20/96;19) ///KOREA ..DATE960927 NO.012 Shinsegi to Enter PCS Business Shinsegi Telecom plans to enter the PCS business which will start in Korea from 1998. With an investment of 600 billion won by the end of next year the company will complete its preparation for the business. According to a new business plan, the company will use 'Upband IS95', which is an improvement over Qualcom's equipment. It will utilize existing earth station systems. Korea Telecom, which is preparing for Personal Communication Service, will also employ 'Upband IS95' for the service. The company will pick the equipment supplier before the end of next year and the company's service charge will be 70 won per minute (cellular phone fees are 144 won per minute at the moment). Des: ZD000 Ref: (Maeil Kyongje Shinmun, 9/20/96;13) ///KOREA ..DATE960927 NO.013 LG to Produce PCS Equipment in San Diego, U.S. LG Information & Communications will enter the U.S. PCS market by producing CDMA systems in the country. The president of the company said on September 19 that LGIC will produce PCS equipment in San Diego from the end of this year, investing $50 million. The products will be supplied to U.S. mobile telecommunications companies including Next Wave, a PCS operator in the country. Des: ZD000 Ref: (Maeil Kyongje Shinmun, 9/20;13) ///KOREA ..DATE960927 NO.014 Anam's Aggressive Marketing Despite the widespread business recession, the Anam Group is continuing aggressive marketing by recruiting more employees and increasing investments for new projects. The group, which has already entered the TRS business through its subsidiary, Anam Telecom, has made a series of new business ventures including a recent technology tie-up with TI of the U.S. for non-memory chips with an investment of $3 billion by 2002. The group, with sales of 550 billion won and exports of $2.38 billion during the first part of this year, plans to hire 300 new employees this year, up 40%. Anam's sales and exports grew by 28% and 22% respectively, despite the depressed semiconductor market. Des: ZD000 Ref: (Maeil Kyongje Shinmun, 9/20/96;11) ///KOREA ..DATE960927 NO.015 Samsung's Ambition for the Refrigerator Market Samsung Electronics ambitions include becoming the world's fifth largest refrigerator maker by 2000. To support the plan the electronics company will produce all export products in its Kwangju factory, unifying the production system, and will completely transfer its small size refrigerator lines to China by the end of this year. The company's home factory will produce only high-end products. According to the company's plan announced on September 19 it will raise its overseas production percentage to 60% by 2000 from the present 30% and will set up new lines in Thailand after China, Indonesia and Slovakia. The company will add lines in the Kwangju factory which will produce large refrigerators for export and high-end products with non-CFC refrigerant. Des: ZAA00 Ref: (Hankook Kyongje Shinmun, 9/20/96;12) ///KOREA ..DATE960927 NO.016 KEPCO Develops Epoxy Insulator On September 19 Korea Electric Power Corporation (KEPCO) announced its development of an epoxy insulator which will replace existing magnetic insulators. This is the third development of the product in the world, following Switzerland and Germany. The company invested 360 million won in the development for the past two years jointly with a private company. The epoxy insulator, with its light weight, is less prone to accidents than magnetic products, said the company. More than 3 billion won of import savings are expected annually. Des: ZAA00 Ref: (Hankook Kyongje Shinmun, 9/20/96;12) ///KOREA ..DATE960927 NO.017 Kia's Increased Equity Discourages Possible Acquisition Rumors of a possible acquisition of Kia will disappear as the company has secured a 35% stake. The company's Management Development Committee reported its purchase of 5% equity to the Security Supervisory Board on September 19. The company now controls more than 50% when shares owned by its partner companies are included. The Samsung Group, which raised the takeover controversy in 1993 by purchasing a large number of shares in Kia Motors, owns 6.1% and the Hyundai Group, 2%. Des: ZFD00 Ref: (Hankook Kyongje Shinmun, 9/20/96;25) ///KOREA ..DATE960927 NO.018 Korean Auto Makers to Concentrate More on Larger Vehicles for the U.S. Market According to an industry source on September 19, Korean auto makers such as Hyundai, Kia and Daewoo have changed their strategy for the U.S. market, judging that they cannot gain more market share with only small cars and that U.S. consumers will buy more large cars helped a healthy economy. Hyundai Motor is going to reduce advertisements for small vehicles and spend more to advertise large cars, with a plan to solidify its image as a maker of large cars. Kia Motors will place large advertisements in newspapers to help sell its Credos. Daewoo Motor will have the V-100, successor to the Prince, as its major passenger car model for the U.S. market. Des: ZFD00 Ref: (Hankook Kyongje Shinmun, 9/20/96;11) ///KOREA ..DATE960927 NO.019 Only Two Korean Auto Makers Will Remain in 2000, Said Die Welt Die Welt forecast on September 18 that because of severe competition among automobile companies only two auto makers will survive in Korea around 2000. The German newspaper said the Korean auto makers, whose primary weapon in the past was price competitiveness, are now trying to improve quality and cut throat competition among companies will leave only two makers in the country's automobile industry around the year 2000. The newspaper predicted that Samsung's entering in the market will activate M&A among the companies. Des: ZFD00 Ref: (Hankyoreh Shinmun, 9/20/96;8) ///KOREA ..DATE960927 NO.020 Daewoo Develops GSM Terminal Daewoo Telecom has developed a GSM terminal, a European TDMA digital Cellular phone. The development of this product, the first in the country, was made with a technology tie-up with TTT (The Technology Partnership) of Britain. The company, which will commercialize the product next month with product approval in Britain, will start exports to Europe next year. Sales of GSM terminals now in use in 90 countries are expected to reach 60 million units before the year 2000. Korean companies are hurrying to develop products by setting up research centers and tie-ups with foreign companies. LG Electronics, which started working on the development last year, will set up a R&D center in Europe to advance into the region. Samsung Electronics, which is assembling key components for the terminal in Britain, reportedly is working to independently develop GSM terminals in its research center in Britain. Des: ZD000 Ref: (Maeil Kyongje Shinmun, 9/23/96;15) ///KOREA ..DATE960927 NO.021 Sewon Telecom Technology Introduction from Motorola for TRS Terminal The company signed a contract with Motorola to introduce TRS technology from the U.S. company. Sewon will import Motorola's finished products next year and it plans local production from 1999. The company will import 120,000 TRS terminals from Motorola next year to sell domestically. Des: ZD000 Ref: (Maeil Kyongje Shinmun, 9/23/96;15) ///KOREA ..DATE960927 NO.022 Hansol's Difficulties in Selecting PCS Equipment Suppliers Hansol PCS and provincial TRS operators are having difficulties in picking their equipment suppliers. According to an industry source on September 22, Hansol PCS planned to select two or three equipment suppliers for its PCS service by the end of October; however, the company is facing a situation where it may have to pick LG, a rival company. A source at the company said if it complies with a 'moral obligation' it may have to have the rival company as an equipment supplier, allowing the rival access to the company's know-how. The company also fears criticism if it uses foreign equipment while the country suffers from an ever-increasing trade deficit. Meanwhile, provincial TRS operators, which are planning to pick from three foreign candidate companies, are at odds with the Ministry of Information and Communications which opposes their plan. Des: ZD000 Ref: (Hankook Kyongje Shinmun, 9/23/96;18) ///KOREA ..DATE960927 NO.023 TriGem and Epson Begin Their Second Honeymoon Amid rumors of a breakup, TriGem and Epson of Japan have recently signed a contract which allows the Korean company to sell Epson's printers in Korea. TriGem will sell 500,000 ink jet printers from the Japanese company for the next two years. TriGem's strategic tie-up with Hewlett Packard last month triggered the rumor that it will break relations with Epson and customers who bought Epson products were beginning to turn away from TriGem, said a source. The improving management and recovering price competitiveness in the Japanese company helped by a weak yen contributed to the continuing cooperation, said a source at TriGem. Des: ZC000 Ref: (Hankook Kyongje Shinmun, 9/23/95;18) ///KOREA ..DATE960927 NO.024 POSCON Consortium Informally Picked as Supplier for New Airport It is unofficially decided that the consortium of POSCON, Mandesman Dimak [phonetic] and AEG was picked to supply 120 billion won worth of automatic logistics processing systems to be installed in the new airport in Inchon. However, other companies such as Hyundai Heavy Industries, Samsung Aerospace and Siemens who participated in the bid are protesting the decision, saying that an unqualified company was selected. They contend that AEG was actually bankrupt in June and is under liquidation. The authorities handling the new airport project said it picked the supplier which passed the pre-qualification tests for the bid. Des: ZNF00 Ref: (Maeil Kyongje Shinmun, 9/23/96;13) ///KOREA ..DATE960927 NO.025 LG's Non-memory Chip Exports to the U.S. On September 18 LG Semicon announced its long-term contract with four U.S. PC parts companies to supply advanced non-memory chips worth 100 billion won a year. This will be the first time a Korean company will supply non-memory products to foreign companies. LG will export 20 billion won worth of ASIC products to four U.S. companies including 3S, Chips & Technology and Cross Point this year and the exports are expected to amount to 100 billion won next year and 500 billion won by 2000. With the exports to the U.S., LG expects to raise its non-memory sales percentage to 30% by 2000. Des: ZAA00 Ref: (Hankook Kyongje Shinmun, 9/21/96;1) ///KOREA ..DATE960927 NO.026 Yuyang Develops the World's First CT-2 Terminal Combined with Pager With an investment of 2.5 billion won, Yuyang Information & Communication Co., Ltd. developed a CT-2 terminal which can be used as a pager. The company will start mass production this October to supply to CT-2 operators including Korea Telecom and to export to Taiwan which is going to provide CT-2 Plus service. Des: ZD000 Ref: (Hankook Kyongje Shinmun, 9/21/96;11) ///KOREA ..DATE960927 NO.027 Korean Auto Makers Will Not Cut Personnel Despite the wide spread management tendency to reduce employees to cope with business slumps, Hyundai and Kia are determined to overcome the present recession without reducing personnel. Hyundai Motor said it will affect the company financially; however, it expects improved productivity when its production capacity doubles or triples and it maintains the present work force. Kia Motors, which shifted 200 managerial employees to sales in March and August, doesn't plan more relocation or personnel reductions. Des: ZFD00 Ref: (Hankyoreh Shinmun, 9/22/96;8) ///KOREA ..DATE960927 NO.028 Kia's Efforts to Reduce Warranty Costs Kia Motors will launch QIK-156 which includes the reduction of warranty expenses by 50% and the product defect rate to 60PPM. The QIK-156 program aims to save 34 billion won over the next 15 months by reducing per-car warranty expenses by 30% by the end of this year and by 64% by the end of next year. Des: ZFD00 Ref: (Maeil Kyongje Shinmun, 9/21/96;7) ///KOREA ..DATE960927 NO.029 Samsung Motor Opens Design Research Center in LA On September 20 the auto maker opened SDA,a design research center in Los Angeles, U.S., with an investment of 2.4 billion won. The company will invest 15 billion won more by 2000 for this research center, named SDA, set up to develop designs for new automobile models. The company will set up more overseas design centers next year. Des: ZFD00 Ref: (Hankook Kyongje Shinmun, 9/21/96;9) ///KOREA ..DATE960927 NO.030 Korean Conglomerates Cooperate for Overseas Projects Korea's large business groups are cooperating with subsidiaries of their rival conglomerates in overseas markets. Hyundai Precision & Industries, Samsung Corporation and Daewoo-Hungary Bank have achieved joint success in the Dunaper [phonetic] Project. The project which supplies steel manufacturing equipment to Hungary's largest state-run steel mill is a collaboration of Samsung's planning, Hyundai's manufacturing capability and Daewoo's financing ability. Meanwhile, Samsung Electron Devices Co., Ltd. and Orion Electric Co., Ltd., a subsidiary of the Daewoo Group, have reportedly agreed to set up a shadow mask factory jointly with Toshiba of Japan in Indonesia and are currently negotiating details such as equity sharing. Des: ZNF00 Ref: (Hankook Kyongje Shinmun, 9/23/96;1) ///KOREA ..DATE960927 NO.031 Dumping Sales of Foreign Products on the Rise As the government policy to further open the market to foreigners contributes to the rapid increase of imports of foreign products, Korean companies are asking the government to take measures such as imposing anti-dumping tariffs so their business can be protected. Items subject to complaints are expanding to industrial products and consumer goods, including electric shavers, bicycles and industrial air controllers, and traditional raw material and agricultural products. According to the Ministry of Trade and Industry there were only two calls for such measures last year; however, as many as eight cases were reported to the ministry through August. Six cases included requests for anti-dumping tariffs. Recently the number of companies filing suits against finished products also increased. Imported electric shavers, which are under investigation, captured a 66.3% Korean market share last year and imported bicycle parts had a 34.4% share. The number of Korean bicycle parts companies fell to 41 as of the end of June this year from 64 in 1992. Des: ZNF00 Ref: (Joong-Ang Ilbo, 9/22/96;34) ///KOREA ..DATE960927 NO.032 Standard for Synclink DRAM Korean semiconductor companies have drafted a manufacturing standard for synclink DRAMs, a next generation memory chip, jointly with 10 foreign companies such as IBM and NEC. On September 23 Hyundai Electronics said 12 companies including Korea's Samsung Electronics submitted a design draft to the IEEE. Technology will be available without royalties, said the company. This past May, 12 companies formed a consortium to work on the technology standardization and Hyundai has chaired the consortium. Synclink DRAMs are five times faster than existing synchronous DRAMs and are regarded as the next generation memory chip together with the RAMBUS DRAM. With this technology, the chip makers will be able to manufacture high speed memory chips capable of processing data at 1.6GBytes per second. Des: ZAA00 Ref: (Hankook Kyongje Shinmun, 9/24/96;12) ///KOREA ..DATE960927 NO.033 SPA to Land Here SPA from the U.S. is to launch full-scale PR activities here from next month. According to an industry source on September 23, SPA has picked Access as its local PR agency. It is believed that SPA's entry is to protect the interests of subsidiaries of U.S. computer makers and to accelerate government lobbying. There are about 100 U.S. software and computer makers in Korea. Des: ZC000 Ref: (Chonja Shinmun, 9/24/96;1) ///KOREA ..DATE960927 NO.034 IBM to Transfer Production Lines to Korea and Taiwan IBM reportedly will transfer its production lines for PC monitors in the U.S. to Korea and Taiwan, reported the China Times. The paper said the U.S. computer maker will close all production lines next year and is considering the supply with 5 million units a year through OEM contracts with monitor companies in Korea and Taiwan. For this, the company is contacting Samsung Electronics and LG Electronics as well as Taiwanese companies, reported the paper. The policy is thought to stem from the company's efforts to reduce production costs along with the growing importance of the Asia/Pacific region. Des: ZC000 Ref: (Chonja Shinmun, 9/24/96;1) ///KOREA ..DATE960927 NO.035 Korean Programmer Finds Critical Defect in Calculating Function of Windows 95 A programmer found that the calculating function in Microsoft's Windows 95 has a defect. The defect was found in a calculating program for mechanical engineering in Windows 95 by a 27 year-old Korean computer programmer. The calculating function produces an erroneous integer (INT) when it should produce the correct number 29. Instead, the system produces 28 (when you press the INT key after multiplying 0.29 by 100). It is confirmed that similar errors are occurring with 0.57 and 0.58, raising the possibility that the software has errors in more numerical values. Experts pointed out that if software with such an error is used in construction, medicine and banking it will have critical results. The U.S. company is expected to face large economic losses and a stain on the reputation of Bill Gates if it fails to clearly resolve the defect. Microsoft Korea responded that its headquarters in the U.S. is searching for the cause. Des: ZC000 Ref: (Dong-A Ilbo, 9/24/96;1) ///KOREA ..DATE960927 NO.036 Samsung Becomes Front Runner in Korea's PC Market Samsung Electronics' annual PC sales reached over 400,000 units, the largest among Korean PC makers, said a company spokesman on September 23. The company, with sales of 380,000 PCs last year, is optimistic about selling 650,000 units this year if the trend continues. The company's market share through August of this year rose to 31.2% from last year's 23%. The company's aggressive marketing launched from the end of last year to prepare for the expected economic slump in 1996 is thought to have contributed to the growth. Encouraged by its growing market share the company plans large R&D investments to satisfy the demand from PC users and, with an investment of 40 billion won, will set up some 100 public PC education centers to attract more customers. Des: ZC000 Ref: (Chonja Shinmun, 9/24/96;8) ///KOREA ..DATE960927 NO.037 Auto Makers to Set Up Logistics Centers in Europe Korean auto makers are to set up logistics centers in Europe for local parts supply. Hyundai Motor said on September 23 that it will set up a center in Belgium, the company's first logistics center in Europe. The center will supply automotive parts for after-sales service from 1998. The company, with three logistics centers in the U.S., plans more in Asia, the Middle East, Africa and Latin America. Kia Motors, which recently opened its U.S. logistics center, will open one in Germany next March. Daewoo Motor, the first Korean auto maker to operate a European logistics center in the Netherlands, will soon expand the facility. SsangYong Motor is looking for a site to set up a logistics center in Germany where its sales subsidiary is located. Des: ZFD00 Ref: (Hankook Kyongje Shinmun, 9/24/96;11) ///KOREA ..DATE960927 NO.038 Samsung's New Plan for Management of its Automobile Business The Samsung Group will integrate its automobile related subsidiaries and business sections into a "sub automobile group," said a group spokesman on September 23. The sub group, which aims for synergy, will include Samsung Motors, Samsung Commercial Vehicle, the automobile business team in Samsung Corporation and related sections in Samsung Electro Mechanics Co., Ltd. The Samsung Group appointed Park, Kyong-Chun, vice chairman of Samsung Motor, as the head of the new automobile group. Des: ZFD00 Ref: (Hankook Kyongje Shinmun, 9/24/96;13) ///KOREA ..DATE960927 NO.039 Korean Cars Consume Less Fuel Than Foreign Cars According to the Korean Automobile Manufacturers Association, Korean passenger cars have better fuel consumption than imports. The fuel consumption of Hyundai's New Grandeur and Daewoo's Arcadia is 8 and 8.6 kilometers per liter respectively, while the Mercedes-Benz (SL320) and Chrysler Vision, similar in size to the two Korean passenger cars, achieve only 6.9 and 7.4 kilometers per liter. Other 2,000-2,500cc and smaller passenger cars from Hyundai, Kia and Daewoo are more efficient in fuel consumption than foreign products. Korea's fuel consumption measurement for passenger cars uses the LA-4 method which is used in advanced counties. Des: ZFD00 Ref: (Maeil Kyongje Shinmun, 9/24/96;11)