[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.
                                 <all>