LG-SK battery lawsuit draws scorn from Korean PM

[Photo by Yonhap]

A comment from Prime Minister Chung Sye-kyun publicly urging South Korea’s two battery majors to end their “embarrassing” dispute over battery patents stirred the business community for excessive political meddling in corporate affairs while raising interest if it will work to result in their out-of-court settlement.

Speaking on a live TV debate arranged by the Korea Broadcasting Club on Thursday, Chung urged

LG Energy Solution and SK Innovation to end the brawl before the final ruling by the US International Trade Commission (ITC) on Feb. 10, admitting he had called up both companies and met executives to urge settlement.

LG filed the suit in April in 2019, accusing SK of a trade secret theft and seeking to block the rival’s battery production and sales in the U.S.

In February last year, the ITC made a preliminary ruling in favor of LG Energy Solution, but its final decision has been delayed three times.

According to an industry source, Volkswagen, a major customer of SK Innovation, sent a letter late last year to urge the Korean government to resolve the battery dispute. Details were not known, but rumors circulated that time that Volkswagen would eventually have to use Chinese batteries instead of Korean products if the matter is not resolved amicably.

On Jan. 10, three U.S. congressmen from Georgia and Tennessee involved in the local plants of the two companies sent a letter to them to urge their settlement, saying If either of them is judged negatively by the ITC, it will have a negative impact on the American economy and public interests.

If the ITC decides to uphold the preliminary ruling, SK Innovation will have to halt shipments of EV batteries and manufacturing equipment to the U.S., where its battery plant under construction in Georgia already committed for mass production for Volkswagen from 2022.

Still the seasoned politician-turned-statesman’s comment was met with disapproval from the busines community already plagued by excessive state controls and regulations under the incumbent administration.

Both companies responded that they were doing their best to end the dispute peacefully through dialogue.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]