LG Chem "Lawsuit with SK, Possible Settlement Before October... Expecting Amicable Resolution"

[Asia Economy Reporter Park So-yeon] LG Chem has expressed its expectation for a prompt and amicable resolution regarding the litigation negotiations with SK Innovation.

On the 31st, during the Q2 earnings conference call, LG Chem responded to questions about the lawsuit with SK Innovation by stating, "An agreement can be reached through negotiations between the two companies before the final ruling in October."

They added, "If both parties agree at a reasonable level based on objective grounds, that will suffice," and said, "We are currently engaging in sincere and earnest discussions, so we hope for a swift and amicable resolution."

Following LG Chem's remarks, industry insiders are increasingly expecting an agreement to be reached ahead of the final ruling by the U.S. International Trade Commission (ITC) scheduled for October. It is anticipated that behind-the-scenes exploratory talks will accelerate.

The legal battle over electric vehicle batteries between the two companies, both domestically and internationally, began last year.

LG Chem, which has been developing electric vehicle battery technology since the 1990s, filed a complaint with the U.S. ITC against SK Innovation, accusing them of poaching related personnel and infringing on trade secrets.

The following month, SK Innovation was also reported to the Korean police for violating the Industrial Technology Protection Act.

A month later, SK Innovation counterattacked by filing a defamation and damages lawsuit and a claim for non-existence of debt at the Seoul Central District Court. Additionally, three months later, SK Innovation filed a patent infringement lawsuit against LG Chem at the U.S. ITC.

In response, LG Chem filed a countersuit for patent infringement against SK Innovation in September.

Currently, with multiple lawsuits ongoing both domestically and abroad, LG Chem has gained a favorable position. In February, the ITC issued a preliminary determination in favor of LG Chem in the trade secret infringement case.

SK Innovation filed an objection, and the ITC is scheduled to make a final ruling in October after a review.

Recently, global automakers have also become involved in the litigation between LG Chem and SK Innovation.

Volkswagen (VW) and Ford, which plan to receive batteries from SK Innovation, submitted opinions to the ITC that could favor SK Innovation, while GM, which is building a joint venture with LG Chem, and the state of Ohio, where the plant will be located, sided with LG Chem, emphasizing the protection of intellectual property rights.

LG Chem is constructing a battery joint venture with GM in Ohio, while SK Innovation is building a battery plant in Georgia. Both companies are investing trillions of won in their U.S. plants, creating significant job opportunities.

If SK Innovation ultimately loses, it could disrupt the construction of the Georgia plant and battery supply within the U.S., leading to speculation that U.S. President Donald Trump might exercise a veto power at the ITC to prevent SK's loss due to the economic impact.

Among approximately 600 cases completed at the ITC since 2010, the only instance where a president exercised veto power was the patent infringement lawsuit between Apple and Samsung Electronics. In 2013, President Barack Obama vetoed the import ban imposed by the ITC ruling that Apple infringed Samsung's patents. There has been no precedent for veto power exercised in cases related to trade secret infringement.

LG Chem, which is also expanding its investments in the U.S., is widely expected to make it difficult for the U.S. government to favor SK Innovation.

Industry experts believe that while such opinions may not be a decisive factor to overturn the ITC's decision, they do create an environment that encourages the two companies to reach an agreement.

Within the industry, there is a forecast that SK Innovation will attempt to reach a settlement, and if LG Chem deems the compensation sufficient, an agreement will be reached before the ITC's final ruling.

While the settlement amount is expected to reach into the trillions of won, it is reported that there is a significant gap between the positions of the two companies. Once formal negotiations begin, intense strategic maneuvering over conditions such as the settlement amount is anticipated.

This content was produced with the assistance of AI translation services.