THE MARKET VALUE OF SK HERCULES EVAPORATES BY ABOUT ONE FIFTH IN TWO DAYS AND THE KOREAN STOCK DROPS BY 18%

ON 29 JULY, THE SOUTH KOREAN STOCK MARKET FELL SHARPLY FOR THE SECOND CONSECUTIVE YEAR, AND THE SECOND QUARTER OF SK HERCULES DID NOT REPORT AS EXPECTED, CONTINUING TO FALL FOR CHIP MANUFACTURERS, WHILE THE NUMBER OF SCATTERED INVESTORS DECREASED. AFTER A 10 PER CENT DROP ON TUESDAY, THE KOREA KOSPI INDEX DROPPED BY ANOTHER 8 PER CENT ON WEDNESDAY. SO FAR IN JULY, KOREA ' S KOSPI INDEX HAS FALLEN BY MORE THAN 30 PER CENT, AND THIS MONTH ' S DECLINE WILL BE THE HIGHEST IN HISTORY. THE INDEX ROSE SIGNIFICANTLY EARLIER THIS YEAR, WITH ALMOST TOTAL RELIANCE ON TRISTAR ELECTRONICS AND SK HERCULES. AFTER A 14 PER CENT FALL ON TUESDAY, SK HERCULES DROPPED BY 12 PER CENT ON WEDNESDAY, EVAPORATING ITS MARKET VALUE BY ABOUT ONE FIFTH WITHIN TWO DAYS; INVESTORS ARE CURRENTLY WAITING FOR THE RELEASE OF FINANCIAL STATEMENTS ON THURSDAY BY TRISTAR ELECTRONICS AND OTHER MAJOR UNITED STATES TECHNOLOGY COMPANIES. KIM XIAN