![LG Chem's share price, which won the battery lawsuit on the 15th, rose 3.13% from the previous trading day, but SK Innovation's stock price, which lost, fell 4.22%. The stock price change graph of the two companies displayed on the electronic board on the morning of that day. [연합뉴스]](https://i0.wp.com/pds.joins.com/news/component/htmlphoto_mmdata/202102/16/550cbb1a-c81d-4f44-9135-9ed0ebf4fc1b.jpg?w=560&ssl=1)
LG Chem’s share price, which won the battery lawsuit on the 15th, rose 3.13% compared to the previous trading day, but SK Innovation’s stock price fell 4.22%. The stock price change graph of the two companies displayed on the electronic board on the morning of that day. [연합뉴스]
After the decision of the US International Trade Commission (ITC) on the battery dispute between LG Energy Solution (formerly LG Chem’s battery business unit) and SK Innovation, the two companies were mixed on the first stock market trading day. LG Chem’s share price rose, but SK Innovation’s share price fluctuated due to uncertainty about the amount of settlement.
LG Chem broke 1 million won and 990,000 won
SK, due to bad news of settlement and order uncertainty
On the 15th, LG Chem’s share price ended at 990,000 won, up 3.1% from the previous trading day. At the beginning of the market, it rose to 101 million won. LG Chem owns 100% of LG Energy Solutions. On the other hand, SK Innovation’s share price, which lost in the battery dispute, ended at 284,000 won, down 4.2%. The stock price fell to 9.6% at the beginning of the market.
The negative factor that contributed to the decline in SK Innovation’s share price is the uncertainty in the size of the settlement amount. SK will be banned from bringing battery materials and parts produced at its Georgia plant into the United States unless it agrees with LG and closes the case by April 10, the period of the US presidential deliberation on the ITC decision. Accordingly, since LG is requesting a settlement amount of about KRW 3 trillion, it is predominantly predicted that the negative financial impact will be reflected in SK Innovation’s share price.
NH Investment & Securities analyst Hwang Yoo-sik predicted that “(SK’s loss) is the expected result, but uncertainties about changes in financial and credit ratings will continue depending on the size of the settlement amount in the future.” He said, “If the agreement is delayed, the negative impact on the business will expand due to an increase in financial burden and weakening of orders.” Kang Dong-jin, an analyst at Hyundai Motor Securities, also said, “There will be a variety of options for whether SK will pay the settlement money in cash or in the form of royalties.” It looks like it will take some time.”
Reporter Sunwook Choi [email protected]