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	February 24, 1999	atimes.com

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Business in Asia Today

Korea Development Bank incurs net loss of $4bn
SEOUL - The net loss incurred by state-run KoreaDevelopment Bank last year is estimated to reach a record highof 4.8 trillion won ($4 billion), the Financial SupervisoryServices said. The loss includes 2.1 trillion won ($1.7billion) from selling its bad debts to the Korea AssetManagement Corp., and 2.2 trillion won ($1.8 billion) inloan-loss provisions, according to the FSS.

Australian company profits soar
CANBERRA - Australian company profits jumped in the threemonths to December, rising 3.7 percent to a record highA$13.25 billion (U.S.$8.45 billion), seasonally adjusted. TheAustralian Bureau of Statistics said in the Decemberquarter, company profits before income tax, net interest anddepreciation were 17.3 percent higher than a year ago. In theSeptember quarter, they had fallen by 0.2 percent.

Chaebol debt ratio to shrink to 187% this year
SEOUL - South Korea's top five conglomerates, known as chaebol, promised to slash their debt-to-equity ratios to 187 percent by the end of the year from the current 326 percent, Financial Supervisory Commission chairman Lee Hun-jai said Tuesday.The debt-to-equity ratios of 264 listed companies contracted to 252 percent by the end of last year from 430 percent of December 1997 due to restructuring, Lee told a gathering of Korean envoys serving abroad.

Microsoft's Japan unit to spin off R&D, distribution arms
TOKYO - Microsoft Corp.'s Japanese subsidiary, Microsoft Co., will spin off its software research and development as well as its software distribution and support businesses, dedicating itself to sales and marketing.The U.S. parent company will provide 100% of the capitalization for the two new firms that will take over the operations on May 3.

Australia's C&W Optus set to exceed profit forecast
SYDNEY - Australia's second largest telecommunications company, Cable & Wireless Optus (ASX:CWO), looks set to exceed its prospectus profit forecast with the company's bottom line boosted by cost cutting, new revenue streams and a turnaround in its mobile phone division.C&W Optus announced it was in the black for the six months ended December 31 last year, posting an A$23.6 million (U.S.$15.05 million) profit before tax and one-off items, compared with a A$72.1 million (U.S.$45.97 million) loss in the previous corresponding period.

Japan's Yachiyo to open fuel tank plant in U.S.
TOKYO - Yachiyo Industry Co. (TSE:7298) announced that itwill invest about $29 million to establish a new company inMarion, Ohio, to manufacture automobile fuel tanks. U.S.Yachiyo, the firm's second U.S. production base, is expectedto produce 480,000 high-quality resin fuel tanks annually.Initially, all of the product is slated to be sold to HondaMotor Co.'s (TSE:7267) U.S. production subsidiary, but Yachiyomight eventually supply other makers as well.

Bridgestone's Indonesian JV starts producing
JAKARTA - Japanese tire manufacturing company Bridgestonesaid its Indonesian joint venture PT Bridgestone TireIndonesia has begun production at its second factory inKarawang, some 55km east of Jakarta. The new factory,occupying an area of 37 hectares and built at an initialinvestment of 12 billion yen ($99 million), is gearedtowards the export market, instead of the local market asoriginally planned.

China to eliminate 1m wool spindles
BEIJING - China is to slash one million woolspindles by way of merger, bankruptcy and reorganization overthe next three years. The state-owned woolen mills will bemerged while loss-making enterprises with outdated equipmentwill be shut. Banks will not grant loans to these enterprisesand the industrial and commercial management departments willrevoke their business licenses.

IT investment draws $28m to Malaysia
KUALA LUMPUR - Malaysia's computer and software industrylast year attracted foreign investments worth RM106.8 million($28.1 million), or 68.3 percent of the total investment ofRM156.4 million ($41 million). International Trade andIndustry Minister Rafidah Aziz said the government continuedto encourage foreign investments in this industry, adding thatby Feb. 2, it had approved a total of 199 projects withMultimedia Super Corridor status.

Mando Machinery to supply suspension parts to GM
SEOUL - South Korea's Mando Machinery (KSE:05790) recentlysigned a contract to supply $7 million worth of suspensionparts to General Motors over the next six years, the companysaid. The auto parts are slated to be used in the U.S. autofirm's new mini-van to be marketed from next year. Mando hadalready shipped brake system components to the American carmaker, the company said.

Pakistan's textile exports drop by 16%
KARACHI - Pakistan's textile exports fell by over 16 percent during the first seven months of the 1997-98 fiscal year,while its production rose by more than 12 percent. Textileexports during the July to January period fell to $602.9million exports from $718.6 million during the same periodthe previous year. Fabric orders from the U.S. dropped by 31.1percent during the period, while Europe reported a 5.4 percent decline.

China's Hebei province lures big names
SHIJIAZHUANG - North China's Hebei province has become anew spot for investment by transnational corporations. In1998, 41 transnational companies built 112 enterprises inHebei with $2.13 billion of contracted investment,equivalent to the combined investment of the previous threeyears, said Shi Rongyao, a provincial government official.Among these companies were big names like Philips, Siemens,Mitsubishi and Daewoo.

(Asia Pulse)

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