World Watch
ASIA/PACIFIC</br></br>South Korea Hits</br></br>A Snag in Overhaul</br></br>Of Conglomerates</br></br>Controversy erupted in South Korea over the proposed merger between Hyundai Electronics Industry and LG Semicon when the latter vowed to fight the transaction. LG Semicon's announcement Thursday came after U.S. consulting company Arthur D. Little chose Hyundai to take a controlling stake in the new entity. LG Semicon, a central unit of the country's fourth-largest conglomerate, LG Group, wouldn't say how it plans to nullify the decision, but analysts say the company probably will appeal to public sentiment, lobby government officials, sell some of its equity to foreign investors and accumulate more cash. The company is expected to argue that it is able to remain independent. "It appears that LG Group is on a collision course with the government now," an electronics analyst at Dongwon Securities said.