The Foreign Ministry has denied the allegations by foreign chipmakers that the government unfairly assisted the country's computer chipmakers. The ministry also denied the government used its influence in getting banks to bail out the troubled Korean chipmaker Hynix.
The ministry said in a statement that the banks made the decision under commercial judgment, not under pressure from the government. The statement also rejected the allegation as groundless that the government provided subsidies to Samsung and Hynix through tax benefits.
Last year, Infineon Technologies of Germany and Micron Technology of the United States filed complaints to the European Union and the U.S. Department of Commerce, accusing their South Korean competitors of benefiting from "unfair" government subsidies. Infineon and Micron said the subsidies allowed the South Korean firms to undercut global chip prices.