South Korea's Samsung Group said yesterday it would step up belt-tightening measures, including production cutbacks overseas to overcome the country's economic crisis. Samsung is the parent company of computer manufacturer AST in Limerick, which currently employs 430 people. Negotiations to reduce employment at the Limerick facility by at least one-third are currently under way.

Samsung, which is South Korea's second-largest conglomerate, said it would gradually lower capacity utilisation at some overseas plants by between 30 per cent and 40 per cent.

Last night, IDA Ireland said what happens South Korean companies in Ireland depends largely on what happens the South Korean economy. IDA representatives said only a handful of Korean companies were based in Ireland, employing fewer than 1,000 people in total.

Samsung said yesterday that output of consumer electronics in south-east Asia, China and other countries would be affected. The output reduction would translate into additional exports from South Korea worth some $1.5 billion (£1.1 billion) and the creation of 5,000 more domestic jobs in 1998, according to Samsung.

"The region's economic situation makes it necessary to restructure our foreign production network while maintaining an increasing level of domestic production," said Samsung spokesman Mr Cho Jang-won.

Samsung said: "The group's survival will depend on securing more foreign exchange in 1998."