By Kim Yoo-chul
Staff Reporter

South Korean conglomerates are on alert in countries that have turned to the International Monetary Fund (IMF) for help.

Samsung Electronics, one of the world's leading electronics manufacturers, has delayed a plan to boost its capacity for the production of display panels in Hungary after the credit crisis slammed the world's financial markets.

``We are closely watching the situation in Hungary as slow demand for electronic products will give an imminent signal for us in deciding our next moves,'' a Samsung Electronics spokesman told The Korea Times, Tuesday. Samsung's plant in Hungary mainly exports to Western Europe.

The company is charting measures to tackle falling demand in Slovakia as the wide-spreading credit woes hit the economy. But it does not plan to slash production or reduce its workforce for the time being.

Samsung runs two LCD plants in Slovakia. Some 800 are employed in its plant in Voderady, near Trnava. With Hungary, Slovakia is seen as one of the most vulnerable countries to the financial meltdown.

``We are also on alert in Ukraine. We are preparing for all possible scenarios,'' a Samsung insider said, asking not to be identified. The IMF said Sunday it would lend $16.5 billion to the Ukraine.

LG Electronics is feeling uneasy about economic difficulties in Latin America. Analysts say the region is better prepared than before to tackle the crisis but there are signs that the economies there are beginning to feel the pinch.

``Argentina, Chile and Brazil are very important for our handsets and flat-screen businesses. We are now bracing for business downturns in these emerging markets,'' a spokesman said. LG is aggressively increasing its spending on 3G handsets there.

Hyundai-Kia Automotive Group is also checking if production in its plant in the Czech Republic will fall in line with decreasing demand for new cars in Western Europe. European carmakers are slashing production.

``According to reports from our affiliate in the Czech Republic, the country seems relatively safe for now. But we might have to take some action depending on the situation,'' a Hyundai Motor official said.

yckim@koreatimes.co.kr