S. Korean Firms in Deals to Aid Competition

South Korea’s top five conglomerates are set to announce long-awaited business swaps and joint ventures aimed at enhancing global competitiveness and easing overcapacity in core industry sectors. The Federation of Korean Industries, a powerful lobby group representing the nation’s biggest conglomerates, said the groups are smoothing out the rough edges of the agreements. The deals would involve seven industry sectors--semiconductors, oil refining, petrochemicals, power generation, rail cars, aircraft and ship engines--it said. The government also said it will provide $2.3 billion for corporate investment and increase financing to potential buyers of houses, automobiles and consumer goods to help pull the nation out of its deepest recession since the 1950s. Local media said Samsung and Hyundai will merge their petrochemical units; Hyundai, Samsung and Daewoo will combine their aircraft businesses; and chip makers Hyundai Electronics and LG Semicon are discussing a merger.