United States Foreign Investments South Korea

Jay Tunney was 50 when he quit his job, raised $40,000 and moved halfway across the world to challenge new frontiers in a business he knew nothing about. He traded in his comfortable life to realize a dream. What followed is a story of an American entrepreneur who went to the brink of failure before registering success in the notoriously difficult South Korean market. It all started in New York back in 1986.

TRW Inc., the world's largest maker of automobile air bags, agreed to buy the assets of South Korean auto parts maker Woo Jin Co. for an undisclosed amount to expand its products for South Korean auto makers. Closely held Woo Jin had 1997 sales of about $24.8 million. The company makes engineered fasteners, switches and controls for heating, ventilating and air conditioning, instrument panels and other parts, mostly for South Korea's Hyundai Motor Co.

Hyundai Motor America has announced plans to build a $15.7-million auto parts distribution and training facility in Aurora, making it the third major Asian auto maker to move to the Chicago suburb. Already in Aurora, adjacent to the Hyundai property, is Nissan Motor Corp.'s distribution center. And Toyota Motor Corp. is to break ground in Aurora next year for a Midwest headquarters and distribution facility.

There is nervousness in the halls of corporate Korea about a powerful name from Arkansas, and it isn't Bill Clinton. Here in the capital, books about Sam Walton, the late legendary salesman, are flying off the shelves. And his name--more specifically, his namesake Wal-Mart Stores Inc.--is being scrutinized, analyzed and criticized in newspapers on a daily basis. For Bentonville, Ark.

In the second sale of a Southland hotel to Korean investors in less than a week, Seoul-based Koreana Hotel Co. has purchased the Hyatt Wilshire Hotel for about $25 million in cash, according to sources close to the deal. The purchase of the 396-room hotel from Hyatt Corp. came after Korean-born investor Charles Lee paid $18.1 million at an auction last Thursday for the 150-room Doubletree Resort in Cathedral City near Palm Springs.

A stately, red brick building stands behind a large courtyard in Seoul's posh Oksudong neighborhood, haunted with the secrets of an extraordinary man who juggled the public affairs of the Olympic Games with a clandestine job selling American war planes to South Korea. The building is the Safari Club, owned by the late Park Chong Kyu, former chief body guard to a dictator, shooting enthusiast and prime mover behind the Seoul Olympics.

There is nervousness in the halls of corporate Korea about a powerful name from Arkansas, and it isn't Bill Clinton. Here in the capital, books about Sam Walton, the late legendary salesman, are flying off the shelves. And his name--more specifically, his namesake Wal-Mart Stores Inc.--is being scrutinized, analyzed and criticized in newspapers on a daily basis. For Bentonville, Ark.

J. Higby's Inc. has signed a letter of intent with Jin-Tong Co. Ltd., a major South Korean trading company, for the licensing rights to open 250 J. Higby's Yogurt & Treat Shoppes over the next six years, with the first four outlets scheduled to open by July 31, prior to the Summer Olympics. According to Gary C. Nelson, president, Jin-Tong also plans to manufacture and distribute J.

In a move heralding an emerging South Korean role in overseas investment, Sammi Special Steel Corp. is about to become the first Korean firm to buy American factories. Moreover, $180 million of the $220-million deal will be financed by an international syndicate of banks led by a South Korean bank, a sign of South Korea's growing financial strength. South Korea, once deeply in debt, will enter the ranks of net creditors this year, Kim Kun, a Bank of Korea governor, said in a recent interview.

Many Korean-owned businesses have been started with money obtained through an informal banking network, called kye in Korean. It typically operates among 10 to 20 close friends and relatives who chip into a monthly pool. Each month's sum is lent to a different member, according to Eui-Young Yu, a professor of sociology at California State University, Los Angeles, who specializes in the local Korean community.

In Min Kee's world, there is no time for self-pity or nationalist pride. He is prepared to offer Americans just about anything they want--at the right price. "We are here to sell," the manager from Korea Land Corp., a government real estate development agency, said during a recent stop in Los Angeles. "We can sell everything but our families."

The troubles facing South Korea's giant conglomerates are proving to be good news for U.S. and other foreign firms. Suddenly they see opportunities to buy modern, Korean-built production facilities around the world, or to find a backdoor into a market that seems destined to eventually regain its robust growth. "For Sale" signs have gone up at steel plants, beverage-manufacturing facilities and giant office towers around the world.

Investors jittery over the Asian economic turmoil sent Powerwave Technologies Inc.'s stock plunging 25% on Thursday, after the company said it expects some orders in its largest market, South Korea, to be postponed. Underscoring the dangers of relying heavily on a single geographical area in the global economy, Powerwave Chief Executive Bruce Edwards said customers could delay or cancel their orders if market conditions within South Korea remain troubled.

Investors jittery over the Asian economic turmoil sent Powerwave Technologies Inc.'s stock plunging 25% Thursday after the company said it expects customers to postpone some orders in its largest market, South Korea. Underscoring the dangers of relying heavily on a single geographical area in the global economy, Powerwave chief executive Bruce Edwards said customers might delay or cancel their orders if market conditions within South Korea remain troubled.

Powerwave Technologies Inc.'s shares fell 7.5% Wednesday amid ongoing concerns about the firm's large exposure in South Korea, analysts said. Powerwave, which supplies radio frequency power amplifiers used in wireless communications networks, derives 75% to 80% of its annual revenue from South Korea, analysts said. The company's stock fell $1.25 a share to $15.56. The stock dropped 5.9% Tuesday.

Starbucks Coffee Co. announced a deal with a leading South Korean department store chain to develop coffee stores. The first Starbucks in South Korea is scheduled to open during the first six months of 1998. Terms of the deal between Seattle-based Starbucks and Shinsegae Department Store Co. were not disclosed. Within Asia, Starbucks operates coffee stores in Japan and Singapore. A shop is set to open in the Philippines by the end of this year. A store is planned for Taiwan in 1998. K.J.

TRW Inc., the world's largest maker of automobile air bags, agreed to buy the assets of South Korean auto parts maker Woo Jin Co. for an undisclosed amount to expand its products for South Korean auto makers. Closely held Woo Jin had 1997 sales of about $24.8 million. The company makes engineered fasteners, switches and controls for heating, ventilating and air conditioning, instrument panels and other parts, mostly for South Korea's Hyundai Motor Co.

New Horizons Computer Learning Centers announced plans to open four franchise outlets in the Philippines and 10 franchise centers in South Korea. The new locations will offer various computer training courses, including business applications, operating systems such as Windows 95, desktop publishing and network training.

New Horizons Computer Learning Centers announced plans to open four franchise outlets in the Philippines and 10 franchise centers in South Korea. The new locations will offer various computer training courses, including business applications, operating systems such as Windows 95, desktop publishing and network training.

For the second time, Samsung Electronics Co. has extended its offer to buy 40% of AST Research Inc. while the two companies await approval from the South Korean government to complete the $378-million deal. Samsung said Friday that it will extend its tender offer until June 30. It announced a similar postponement on April 21. Under the terms of the offer, the Seoul-based electronics giant will pay existing shareholders $22 a share for 5.82 million shares--a total of $128 million.