Economics and Trade Relations

Text: Oregon Lawmakers Urge Support for Korean Semiconductor Trade

(Sen. Gordon Smith and Rep. Peter DeFazio introduce concurrent
resolutions) (760)
31 March 2003

Senator Gordon Smith (Republican of Oregon) and Representative Peter
DeFazio (Democrat of Oregon) introduced similar measures in their
respective chambers calling on the U.S. Government to act carefully
with regard to the South Korean semiconductor trade.

Senate Concurrent Resolution 29 (S.Con.Res.29) and House Concurrent
Resolution 124 (H.Con.Res.124) both note that a disruption in the
semiconductor trade would "result in the loss of highly skilled
American jobs." The measures also call for careful review of the
Korean owned Hynix Semiconductor Inc., which is currently the subject
of trade remedy proceedings and continuing review by the United States
Trade Representative.

Smith, a member of the Senate Finance Committee, and DeFazio were
joined by all the other lawmakers from Oregon in cosponsoring the
resolutions. Hynix has invested over $1 billion in its facilities in
Eugene, Oregon.

H.Con.Res.124 and S.Con.Res.29 ask the Secretary of Commerce to
"review all the facts surrounding the financial restructuring of Hynix
Semiconductor Inc. in light of economic reforms which have taken place
in South Korea in recent years."

The proposed measures, which support the ailing Hynix, come just one
month after Senator Michael Crapo (Republican of Idaho) submitted a
resolution opposing Korean company. Crapo's measure, S.Con.Res.19,
calls for an end to Korea's "unlawful bailouts of Hynix Semiconductor
Inc."

Following is the text of Senate Concurrent Resolution 29:

(begin text)

108th CONGRESS

1st Session

S. CON. RES. 29

Expressing the sense of Congress regarding semiconductor trade between
the United States and the Republic of Korea and the need to assure
that United States trade actions do not result in geopolitical
tensions or United States job losses.

IN THE SENATE OF THE UNITED STATES

March 25, 2003

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

CONCURRENT RESOLUTION

Expressing the sense of Congress regarding semiconductor trade between
the United States and the Republic of Korea and the need to assure
that United States trade actions do not result in geopolitical
tensions or United States job losses.

Whereas the Republic of Korea is a vital ally of the United States in
Asia;

Whereas the current tensions on the Korean Peninsula require the
strongest possible alliance between the United States and the Republic
of Korea;

Whereas Hynix Semiconductor Inc. is a major Korean and global
semiconductor manufacturer;

Whereas Hynix Semiconductor Inc. has invested over $1,000,000,000 in
its facilities in Eugene, Oregon, and is increasing that investment;

Whereas Hynix Semiconductor Inc. employs over 1,000 highly skilled and
compensated Americans at its facilities in Eugene, Oregon;

Whereas these jobs are particularly valuable to Oregon and the United
States economy at a time of economic uncertainty;

Whereas semiconductor trade between the United States and the Republic
of Korea is currently the subject of trade remedy proceedings and
continuing review by the United States Trade Representative;

Whereas the Republic of Korea has, as a result of the currency crisis
in the mid-1990s, implemented economic reforms;

Whereas as a result of those reforms the Government of South Korea is
no longer involved in commercial lending decisions; and

Whereas the Government of South Korea has affirmed that it has had no
role in the economic restructurings of Hynix Semiconductor Inc.: Now,
therefore, be it

Resolved by the Senate (the House of Representatives concurring), That
it is the sense of Congress that--

(1) the United States Government should act carefully and judiciously
with regard to issues involving semiconductor trade between the United
States and the Republic of Korea to assure that trade disputes do not
create geopolitical or economic tensions between the United States and
the Republic of Korea, and do not result in the loss of highly skilled
American jobs, including jobs at United States facilities of Korean
semiconductor manufacturers;

(2) the Secretary of Commerce should review carefully and objectively
all the facts surrounding the financial restructuring of Hynix
Semiconductor Inc. in light of economic reforms which have taken place
in South Korea in recent years, and avoid taking any action which will
threaten the jobs of American workers in the semiconductor industry or
threaten future investment in Hynix Semiconductor Inc.'s facility in
Eugene, Oregon; and

(3) the United States Trade Representative should seek to address
issues involving semiconductor trade between the United States and the
Republic of Korea through consultation after full review of the facts.

(end text)

(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)