Hyundai Space & Aircraft Co alleges that Boeing tried to force it out of its role as producer of wings for the 100-seat Boeing jetliner, which has struggled against slow sales for about four years.

The complaint, filed in US district court in San Francisco on Tuesday, alleges that Boeing, which is based in Seattle, intentionally acted in ways aimed at forcing Hyundai out of the project, so it could shift production to its own subsidiary in Canada. The complaint claims that Boeing "undertook a variety of actions which were designed to, and did have the effect of, unreasonably delaying [Hyundai's] performance and/or unreasonably increasing [Hyundai's] costs of performance."

In a statement, Boeing acknowledged "ongoing performance concerns with Hyundai involving that company's ability to perform thecontracted wing work and their long-term commitment to the Boeing program."

Boeing said these concerns intensified in the first half of this year, during which it sought to resolve the problems. "Unfortunately, Hyundai decided to resolve these differences in court. Boeing is confident that its position will prevail."

The dispute, which focuses on cost and production problems, arises from an unusual arrangement for developing and producing the plane, which was conceived five years ago as the MD-95 jetliner by McDonnell Douglas Corp, which was acquired by Boeing in 1997.

In an effort to hold down its initial development costs, McDonnell Douglas persuaded aerospace suppliers to pay tooling and start-up expenses in exchange for subcontracts. Hyundai became the supplier of 717-200 wings in 1996.

Hyundai, according to the complaint, invested more than $300 million in a plant in which to construct the wings and tens of millions of dollars more in tooling and equipment. Hyundai received from Boeing about$1.5 million for each pair of wings, according to a Hyundai Space business plan. Industry executives say that Hyundai originally accepted a low payment for its wings, which would result in losses, to buy its way into the aircraft business. But Hyundai experienced higher costs due to Boeing's actions, the complaint alleges. The complaint says Boeing required over 4,000 changes in the wing design in less than three years, which was "commercially unreasonable."

Hyundai also claims that Boeing delayed parts deliveries. In one example cited in the complaint, Hyundai failed to receive from the Boeing subsidiary in Canada two parts to complete the assembly of a set of wings.

The subsidiary refused to send the parts despite repeated requests, the complaint claims, which threatened Hyundai's ability to complete the wings on time. The complaint also alleges that Boeing violated its contract, which made Hyundai the primary supplier of wings, by shifting production to its Canadian subsidiary. Last year, according tothe complaint, Boeing authorized the subsidiary to supply 50 sets of wings based on a lack of confidence that Hyundai could meet the obligation, a concern the complaint calls "unsubstantiated."

Hyundai Space is in the process of merging with the aerospace companies of Samsung Group and Daewoo Group. Boeing has accumulated about 115 firm orders for the 717 since 1995.

Major customers include AirTran of Florida, which has ordered 50 planes. Trans World Airlines also ordered 50 aircraft and other small orders have been placed by leasing companies. Orders have been slow partly because Boeing and rival Airbus Industrie offer other planes of a similar size.

Hyundai Electronics completes LG Semicon buyout

Hyundai Electronics Industries Co on Thursday said it had completed the much-touted acquisition of a rival South Korean firm to launch one of the world's biggest chipmaking firms.

From now, LG Semicon Co Ltd becomes a subsidiary of Hyundai Electronics, a Hyundai spokesman said, adding the twofirms would be integrated into one company in October.

``As of today, we officially acquired managerial control of LG Semicon by paying out 2.56 trillion won ($2.2 billion),'' he said.

Hyundai said the merger would help the company enhance price competitiveness and reduce cost by $6 billion over the next five years.

The merger was one of the major planks of the so-called ``big deal'' business swaps among debt-laden conglomerates, whose unfettered expansion during the boom years was blamed for contributing to a financial crisis that erupted in late 1997.

It comes as good news a week after another much-trumpeted ``big deal'' business swap between the Samsung and Daewoo groups failed.