“Respect for trade secrets is the basis for business operation”
LG Chem’s shareholders’ meeting emphasized strict response
Shin Hak-cheol, vice chairman of LG Chem, announced on the 25th that “we will take strict measures to receive reasonable compensation” in relation to the dispute with SK Innovation for infringing the trade secrets of electric vehicle batteries. LG Energy Solutions and SK Innovation, which are LG Chem’s battery subsidiaries, are negotiating a settlement amount, but they have not been able to narrow the difference in opinion about the amount.
Vice Chairman Shin emphasized this day at the 20th regular shareholders’ meeting held at LG Twin Tower in Yeouido, Seoul, saying, “I will do my best to enhance the value of shareholders, investors, and the company through the protection of intellectual property rights accumulated over 30 years.”
Regarding the final decision of the United States International Trade Commission (ITC), he said, “It is this issue that, even in the light of my 30 years of global business experience, ITC made a firm decision on the perpetrators by mentioning the organizational culture as well as the judgment on the infringement of trade secrets, which is the issue of litigation. It is based on a strict recognition of the importance and seriousness of this.” Vice-Chairman Shin added, “Respect for intellectual property rights such as trade secrets is fundamental to business operation.”
On the 11th of last month, the ITC ruled that SK Innovation’s batteries would be banned from US production and import for 10 years. It is known that LG Energy Solutions demands more than 3 trillion won in compensation, while SK Innovation wants to agree at the 1 trillion won range.
SK is engaged in an all-out war to elicit the presidential veto, including recently recruiting Sally Yeats, who served as Vice Minister of Justice in the US Government of Barack Obama, as a business advisor, and dispatching Chairman of the Board of Directors Kim Jong-hoon, former head of the Ministry of Foreign Affairs and Trade, to the United States. If President Joe Biden does not exercise his veto during this period, SK Innovation will be banned from producing and importing batteries in the United States for 10 years.
Reporter Mansoo Choi [email protected]
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