[서울신문] LG-SK battery negotiations 3 trillion vs 800 billion settlement money negotiations in earnest… Should Taewon Choi and Gwangmo Gu go out?

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▲ LG Energy Solution vs SK Innovation

As the’battery war’ between SK and LG, which lasted for more than two years, ends with’LG’s victory’, negotiations for the settlement amount between the two companies are expected to begin in earnest. It is noteworthy whether SK Chairman Choi Tae-won and LG Chairman Koo Kwang-mo (right) will make an’agreement’ decision.

On the 10th (local time), the US International Trade Commission (ITC) raised some hands from LG in the final ruling on the lawsuit for infringement of trade secrets for electric vehicle batteries (rechargeable batteries) filed by LG Energy Solutions (formerly LG Chem) to SK Innovation. Listened. ITC decided to ban the export of some lithium-ion batteries to the United States for 10 years on charges of violating Article 337 of the U.S. Customs Act. SK, which has been banned from exporting some lithium-ion battery products to the US for 10 years, must find a way to minimize damage through an agreement. The’deadline’ for the two companies to agree is on April 11th. This is the day the US President deliberates on the ITC’s final decision (60 days). After that, the import ban is in full swing.

There are two final cards that SK can expect. It is the right to detoxify the president and to appeal. The President of the United States may reject the ITC decision for public interest. SK is building a battery factory in Georgia, US with 5 billion dollars (about 5.3 trillion won). We hope that the US administration will take this into account. It is possible to disagree with the decision and file a complaint with the United States Court of Appeals.

However, in the industry, neither method is expected to achieve the results SK wants. First of all, there is no precedent for the US president to veto a ruling against ITC trade secret infringement, but it is unlikely that President Joe Biden, who emphasized the protection of intellectual property rights, will break this and protect SK. No appeals have been reversed among the five ITC final decisions made on trade secret infringement since 2010.

There are many prospects that the two companies will eventually reach an agreement. In Korea, Prime Minister Jeong Sye-gyun said last month, “(The two companies) should not fight over small pies, but actively advance toward the global market. If the two companies fight, they only make others good.” Volkswagen, who suffered from the import ban as a customer of SK Innovation, said, “We hope that both companies will resolve the dispute outside the court.”

However, while the two companies remain open to the possibility of an agreement, there is an atmosphere that continues to struggle over key issues. After the final ruling, LG Energy Solutions issued a statement and made an offensive, saying, “(SK) now acknowledges the final decision to infringe trade secrets and shows a sincere attitude to close the litigation.” On the other hand, SK said, “It is regrettable that we did not have the opportunity to judge the substance of the infringement of trade secrets based on procedural problems even though we made every effort to address the issue.” I will respond.”

The key is a settlement amount that can show authenticity. According to the industry, LG is demanding a level in the second half of the 2 trillion won level, while SK is said to want to clear it at 800 billion won. As the gap is large, it will not be easy to close it in the remaining negotiation period.

Some of the business circles have made observations that even Chairman Choi and Chairman Koo can come forward for a smooth agreement. In particular, as Chairman Choi is about to take office as the president of the Korea Chamber of Commerce, which represents the business world, it is analyzed that he can take an active gesture of reconciliation.

Reporter Oh Kyung-jin [email protected]