Hynixs Kwon to lead KSIA

By Kim Yoo-chul

Kwon Oh-chul, chief executive of Hynix Semiconductor, has been named as the new chairman of the Korea Semiconductor Industry Association (KSIA).

Kwon replaces Samsung Electronics’ chip boss Kwon Oh-hyun, becoming the first non-Samsung official to lead the industry lobby.

Kwon joined Hyundai Group in 1984 and established a career as a corporate finance expert before taking over management at Hynix in March last year. His term as KSIA chairman runs through February 2013.

``Korean companies face tougher competition from rivals in other countries and business conditions are becoming more difficult due to the slow recovery of the global economy,’’ said Kwon when asked to address challenges the chip industry is facing.

Korea is home to the country’s two largest makers of computer memory chips in Samsung and Hynix. Last year, the country exported $50.7 billion worth of semiconductors, joining cars and ships as a major export item, according to government data.

Despite the challenging environment, Kwon said Hynix expects a better year in terms of revenue than last year, when it posted $10.5 billion in sales.

``We are closely monitoring foreign currencies. Also, demand for memory chips is weak and this could result in an underwhelming second quarter,’’ he said.

Hynix plans to invest 3.4 trillion won in its key production facilities this year and is encouraged by the improving production yields from the 30-nanometer design-rule lines.

Hynix also happens to be one of the standout shopping items in the merger and acquisition (M&A) market this year. Kwon declined to comment on the current situation.

Major shareholders of Hynix are already in their third attempt to sell their stake, estimated at about $2.1 billion, but a deal is seen more likely this time due to the firm’s improved prospects.