The South Korean electronics group, Hyundai, has denied that its £3 billion investment in Scotland has been delayed because of the financial crisis in the Far East.

The company has insisted that the first half of the development, which involves a £1 billion investment and will employ around 1,000 people, is on schedule to open at the end of next year.

The plant site in Dunfermline

Hyundai Semi Conductor Europe said: "The company wish to make it very clear to the media and the public that it remains fully committed to phase one of the project.

"Construction is on schedule and the facility will be operational and production will begin by the end of 1998 as stated previously.

"Speculation in the media suggesting that this project is under threat or that there will be a delay to phase one is unfounded."

The firm said a final commitment to the second phase had always been dependent on market conditions but insisted: "Nevertheless, we plan to continue towards that objective."

Speculation about its intentions began after The Financial Times reported from Seoul that it and many other South Korean firms were having to re-assess their businesses after the country's economy ran into serious problems.

They are coming under pressure from the government there to cut back on investment as part of a drive to reduce debt.

The Scottish Office minister, Brian Wilson, said it would be wrong to speculate before getting an accurate picture of Hyundai's intentions.

"We have been in touch ... with Hyundai in the last few days and the picture we got then does not square with what appears today the Financial Times.

"Nonetheless that is obviously a very serious source and LIS is working very hard to clarify the position."

Meanwhile, Asian currencies steadied for the first time in almost a week on Thursday as dealers waited for governments to put in place financial rescue packages.

Promises of action by South Korea, Malaysia and Thailand and the continuing fallout from the financial crisis in Japan all preoccupied dealers.

But markets were thin, partly due to the Thanksgiving holiday in the United States.

 
John Burton, from the Financial Times in Seoul, has spoken to Hyundai

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