A KOREAN electronics giant which failed to bring thousands of promised jobs to Newport has paid back £36m of taxpayers' money.

Hynix, formerly known as LG Semicon Wales Ltd, was given £87.1m in Welsh Office grants to help open its Newport site nine years ago.

At the time LG pledged to create 6,000 jobs in Newport and was billed as a major investment coup.

But the semiconductor plant was never brought into full production.

Now Wales has clawed back a final £17m instalment from the firm, which has already handed over land worth £6.65m, and £13m of cash.

Terms of the agreement between Hynix and the Welsh Development Agency means the Assembly-sponsored public body will recover the whole £36.65 million it contributed to assist the ill-fated project.

Nic Neal, an executive director with the WDA, described the settlement as a very good one for Wales.

"It reflects the fact that Hynix has taken full responsibility for public sector assistance given to it at Newport. Like us, Hynix wishes to see the site brought into use for the benefit of the local economy and we shall be redoubling our effort to find a new owner who can use this facility to create skilled and sustainable jobs for the area."

The WDA is still trying to sell the vacant plant to another business. In total, LG Semicon had invested £131m in the construction of the 100,000 sq m plant, and at the time it was touted as being one of Europe's biggest inward investments.

But it remains today an unused white elephant.

Newport councillor Ken Critchley, cabinet member for development and employment, told the Argus he welcomed the return of the cash.

He said: "I would now like to see it re-invested in the Newport area. I'm sad about the whole thing. It was a missed opportunity, but we are optimistic about the next stage."

A spokesman for Hynix said: "Hynix is extremely disappointed that the changes in the global semiconductor market have meant that it has been unable to progress this major project in Newport and that it has had to write off the major part of its investment.

"However, the repayment of the grant and the return of the site to the public sector has enabled Hynix to withdraw honourably and at no cost to the public purse."