Prime Minister Jeong Sye-gyun called for an immediate agreement between the two companies in relation to the battery litigation between LG Energy Solutions and SK Innovation in the United States.
It is unusual for government officials to make official comments about this lawsuit, which lasted for more than two years, so the two companies seem to be quite embarrassed. Some are concerned that the position of companies may become difficult if the politicians intervene in the technology leak dispute that must be ended.
Prime Minister Chung pointed out, “If both companies fight, they will only do good things to others,” he said at the Korean Broadcasting Reporters Club Invitational Debate held at the Korean Artists Center in Yangcheon-gu, Seoul. “The two companies must go ahead and solve the problem quickly.”
Prime Minister Chung’s remarks on the day were an answer to the question,’Is the government directly willing to go before the lawsuit between LG and SK?’ He said, “It is said that the cost of the lawsuit is hundreds of billions of billions of dollars,” he said. “It is not only economical, but if the two companies fight, they will only do good things. Even if I don’t talk about who the other is, everyone will know.”
Prime Minister Chung said he had previously met with the chief executives of both LG and SK companies. He said, “(Meeting)’I’m really embarrassed. Isn’t that embarrassing? Is it okay to cause people’s worries like this?’ But it’s still not resolved. I hope we can quickly create such a situation where we will not fight over the pie and actively move toward the big global market.”
It is pointed out that the longer the dispute between domestic companies is, the more damaging both sides will be, but the industry is concerned that Prime Minister Jung’s remarks may appear as the government’s involvement in private companies’ disputes.
An industry official said, “As the electric vehicle battery market grows, it is natural that competition for patent preemption is intensifying, and it is necessary to clarify technology leakage disputes, and there is no problem later.” “Conversely, latecomers can easily find out competitors’ core technologies and trade secrets. If the act of using it is acceptable, will any company invest for the future?”
Another industry official said, “At the moment, the ruling of the US International Trade Commission (ITC) is the most important, and both sides wait only for the final result, but there is no result, so it is a cautious situation.” “I have to talk about it only as a result of the lawsuit.”
Both companies also expressed their stance on Prime Minister Chung’s remarks this afternoon. “LG Chemical (currently LG Energy Solutions) has filed a lawsuit for infringement of trade secrets, and has entered its third year since the lawsuit began,” said Ji Dong-seop, CEO of SK Innovation’s battery business. “I am very sorry to the people for not being able to solve it smoothly, even though I have been working on it.”
CEO Ji said, “We will do our best to ensure that we are well aware of the concerns and wishes of the people and to resolve them smoothly through cooperative and constructive dialogue efforts with the counterparts of the dispute.” “K-Battery can contribute to the development of the national economy and industrial ecosystem. I will try to make it.”
LG Energy Solutions also said, “In relation to the battery lawsuit, we are currently doing our best to reach an agreement.” Still, he added, “However, until recently, SK Innovation’s proposal had no willingness to negotiate,” he added, “I look forward to having any proposals worth discussing.”
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On the other hand, LG Energy Solutions’ lawsuit against SK Innovation to infringe battery trade secrets to ITC is expected to be finalized on the 10th of next month (local time).
In February last year, ITC ruled that SK Innovation lost the preliminary lawsuit. After that, the final ruling was scheduled to be issued on October 5 of last year, but the ruling was postponed three times. However, as the ITC recently issued a ruling on another lawsuit, the final judgment on this lawsuit is likely to come out as planned on this day.