IBM, LG winding down joint venture

I guess it is true what they say, all good things must come to an end. This proves true for the IBM / LG Electronics partnership based in South Korea. While the specifics are not being confirmed, it is possible that it has something to do with the bribery incident that took place in South Korea back in January.

The CEO of the joint venture, Lee Duk Ju, recently told employees that the two companies will likely divide LG/IBM PC, with each parent company taking the elements it originally brought to the partnership, according to sources. Lee said the dissolution is expected to occur by the end of the year, sources added. Labor unions, which are quite strong in South Korea, are negotiating with the companies over issues relating to employees.

An IBM representative in the United States did not say the venture would be dissolved but acknowledged that the two companies are re-examining it. “Currently, we are reviewing the partnership, but no agreement has been reached,” he said.