A concurrent resolution expressing the sense of Congress regarding the Republic of Korea's continuing unlawful bailouts of Hynix Semiconductor Inc., and calling on the Republic of Korea, the Secretary of Commerce, the United States Trade Representative, and the President to take actions to end the bailouts.

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. Con. Res. 11 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. CON. RES. 11

Expressing the sense of Congress regarding the Republic of Korea's
continuing unlawful bailouts of Hynix Semiconductor Inc., and calling
on the Republic of Korea, the Secretary of Commerce, the United States
Trade Representative, and the President to take actions to end the
bailouts.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

February 27, 2003

Mr. Crapo (for himself and Mr. Allen) submitted the following
concurrent resolution; which was referred to the Committee on Finance

_______________________________________________________________________

CONCURRENT RESOLUTION

Expressing the sense of Congress regarding the Republic of Korea's
continuing unlawful bailouts of Hynix Semiconductor Inc., and calling
on the Republic of Korea, the Secretary of Commerce, the United States
Trade Representative, and the President to take actions to end the
bailouts.

Whereas the government of the Republic of Korea has continually, and in
violation of its international trade commitments, supplied financial aid
to Hynix Semiconductor Inc. (``Hynix''), a failing semiconductor
company;
Whereas the United States has strongly and repeatedly requested that the
Republic of Korea refrain from these wrongful trade activities;
Whereas these bailouts have resulted in severe distortion of the world DRAM,
semiconductor, and electronics markets to the detriment of major United
States and other non-Korean producers;
Whereas the United States has continually provided military, national security,
and financial aid to the Republic of Korea, including significant
contributions to the International Monetary Fund financial package to
prevent the Korean economy from going into bankruptcy;
Whereas Hynix exports the vast majority of its semiconductor production to
nations outside of Korea, including to the United States and European
nations;
Whereas, it was recently announced that Hynix would receive an additional
$4,000,000,000 in debt restructuring, eliminating Hynix's existing debt,
an additional $1,550,000,000 in a debt-for-equity swap, and an extension
of $2,500,000,000 with respect to other outstanding Hynix loans;
Whereas Hynix's creditor banks are providing another subsidy to Hynix in the
form of $188,000,000 in financing to a Chinese company to purchase
Hynix's flat computer screen business;
Whereas the largest creditors of Hynix are institutions such as the Korea
Development Bank and the Woori Bank, both of which are 100 percent owned
by the government of the Republic of Korea; and
Whereas United States and Europe have been forced to initiate anti-subsidy
investigations against the Republic of Korea: Now, therefore, be it
Resolved by the Senate (the House of Representatives concurring),
That--
(1) it is the sense of Congress that the actions of the
Republic of Korea with respect to the bailouts of Hynix
Semiconductor Inc. (``Hynix'') are severely detrimental to the
bilateral friendship and economic relationships between the
United States and Korea; and
(2) Congress calls on--
(A) the Republic of Korea to--
(i) immediately cease any further bailouts
of Hynix; and
(ii) immediately comply with all of its
obligations as a member of the World Trade
Organization, including its obligations
regarding subsidies;
(B) the Secretary of Commerce and the United States
Trade Representative to--
(i) immediately take such actions as are
necessary to end any further bailouts of Hynix,
including the self-initiation of further trade
cases, the initiation of a further government
investigation of the financial impact of these
bailouts, and the calling of a special
subsidies code meeting to raise the legal
concerns with this issue; and
(ii) begin consultations with Congress
regarding appropriate legislative action to
fully deal with the impact of the bailouts of
Hynix; and
(C) the President to consult with the European
Union regarding joint action with respect to the
unlawful subsidies to Hynix that are harming the
international DRAM, semiconductor, and electronics
markets.
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