[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. Con. Res. 10 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
S. CON. RES. 10

 Expressing the sense of the Senate regarding the Republic of Korea's 
                unlawful bailout of Hyundai Electronics.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 13, 2001

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

_______________________________________________________________________

                         CONCURRENT RESOLUTION


 
 Expressing the sense of the Senate regarding the Republic of Korea's 
                unlawful bailout of Hyundai Electronics.

Whereas the Government of the Republic of Korea over many years has supplied aid 
        to the Korean semiconductor industry enabling that industry to be the 
        Republic of Korea's leading exporter;
Whereas this assistance has occurred through a coordinated series of government 
        programs and policies, consisting of preferential access to credit, low-
        interest loans, government grants, preferential tax programs, government 
        inducement of private sector loans, tariff reductions, and other 
        measures;
Whereas government assistance to the semiconductor industry is part of the 
        preferences, privileges, and support given by the Korean government to 
        corporate conglomerates, known as chaebols, over several decades;
Whereas the policy of providing assistance to chaebols has resulted in trade-
        distorting spending and capacity expansion and resulted in massive 
        corporate debt;
Whereas in December 1997, the United States, the International Monetary Fund 
        (IMF), other foreign government entities, and a group of international 
        financial institutions assembled an unprecedented $58,000,000,000 
        financial package to prevent the Korean economy from declaring 
        bankruptcy;
Whereas as part of that rescue package, the Republic of Korea agreed to put an 
        end to corporate cronyism, and to overhaul the banking and financial 
        sectors;
Whereas Korea also pledged to permit and require banks to run on market 
        principles, to allow and enable bankruptcies and workouts to occur 
        rather than bailouts, and to end subsidies;
Whereas the Republic of Korea agreed to all of these provisions in the Stand-by 
        Arrangement with the IMF dated December 3, 1997;
Whereas section 602 of the Foreign Operations, Export Financing, and Related 
        Agencies Appropriations Act, 1999, as enacted by section 101(d) of 
        Division A of the Omnibus Consolidated and Emergency Supplemental 
        Appropriations Act (Public Law 105-277; 112 Stat. 2681-220) specified 
        that the United States would not authorize further IMF payments to Korea 
        unless the Secretary of the Treasury certified that the provisions of 
        the IMF Standby Arrangement were adhered to;
Whereas the Secretary of the Treasury certified to Congress on December 11, 
        1998, April 5, 1999, and July 2, 1999 that the Stand-by Arrangement was 
        being adhered to, and assured Congress that consultations had been held 
        with the Government of the Republic of Korea in connection with the 
        certifications;
Whereas the Republic of Korea has acceded to the World Trade Organization, and 
        to the Agreement on Subsidies and Countervailing Measures (as defined in 
        section 101(d)(12) of the Uruguay Round Agreements Act);
Whereas the Agreement on Subsidies and Countervailing Measures specifically 
        prohibits export subsidies, and makes actionable other subsidies 
        bestowed upon a specific enterprise that causes adverse effects;
Whereas Hyundai Electronics is a major exporter of semiconductor products from 
        the Republic of Korea to the United States; and
Whereas the Republic of Korea has now engaged in a massive $2,100,000,000 
        bailout of Hyundai Electronics which contravenes the commitments the 
        Government of the Republic of Korea made to the IMF, the World Trade 
        Organization and other agreements, and the understandings and 
        certifications made to Congress under the Omnibus Consolidated and 
        Emergency Supplemental Appropriations Act, 1999: Now, therefore, be it
    Resolved by the Senate (the House of Representatives concurring), 
That Congress--
            (1) believes strongly that the relationship between the 
        United States and Republic of Korea has been and will continue 
        to be harmed significantly by the bailout of a major exporter 
        of products from Korea to the United States;
            (2) calls on the Republic of Korea to immediately end the 
        bailout of Hyundai Electronics;
            (3) calls on the Republic of Korea to comply immediately 
        with its commitments to the IMF, with its trade agreements, and 
        with the assurances it made to the Secretary of the Treasury;
            (4) calls on the Secretary of the Treasury, the Secretary 
        of Commerce, and the United States Trade Representative to take 
        immediately such action as is necessary to assure that the 
        unlawful bailout by the Republic of Korea is stopped, and its 
        effects fully offset or reversed; and
            (5) calls on the United States Trade Representative and the 
        Secretary of Commerce to monitor and report to Congress on 
        steps that have been taken to end this bailout and reverse its 
        effects.
                                 <all>