"LG-SK Battery Dispute, Need to Resolve Quickly Instead of Prolonged Litigation"

Prime Minister Chung Sends Another Message
Last-Minute Agreement Interest Before ITC Decision

Prime Minister Chung Sye-kyun is giving a greeting at the Regulatory Sandbox 2nd Anniversary Performance Report held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on the 2nd. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Choi Dae-yeol] Prime Minister Chung Sye-kyun has once again expressed his hope that LG Energy Solution (formerly LG Chem) and SK Innovation will reach an agreement soon to resolve their electric vehicle battery dispute in the United States. With the decision from the U.S. International Trade Commission (ITC) just a week away, attention is focused on whether a last-minute settlement can be achieved.

On the 2nd, after the Regulatory Sandbox (regulatory exemption system) 2nd anniversary performance report meeting, Prime Minister Chung told reporters, "It would be better if (the two companies) do not engage only in legal battles and resolve the issue quickly." Earlier, at a Broadcast Journalists Club debate in late last month, he also said, "The litigation costs amount to hundreds of billions of won, and if both companies fight, it only benefits others," raising the possibility of a dramatic settlement before the ITC's decision.

Shortly after the Prime Minister's remarks last month became known, both companies responded by saying they would "resolve the matter amicably." However, LG Energy Solution stated, "Until recently, SK Innovation's proposals showed no willingness to negotiate, but we hope there will be proposals worth discussing," indirectly indicating that narrowing differences over specific settlement terms would not be easy.

As the lawsuit between the two companies enters its third year, it is rare for a high-ranking government official to repeatedly urge a "smooth resolution." This is interpreted as reflecting the intense national-level competition over leadership in the electric vehicle battery market. With the global electric vehicle market rapidly expanding due to environmental regulations, there are also opinions that it benefits neither company to devote energy to litigation.

Since April 2019, when former LG Chem first filed a trade secret infringement lawsuit against SK Innovation with the ITC, the two companies have been involved in multiple disputes over battery trade secrets and patents both domestically and internationally. Although the government appears to be encouraging mediation, raising the possibility of a last-minute settlement, the industry expects that due to deepened conflicts, the companies will only seek an agreement after the ITC's decision is announced.

Hwang Kyu-won, a researcher at Yuanta Securities, said, "Ultimately, I believe that only after a credible institution makes some form of decision will it be possible to discuss the specific amount of settlement money and other details."

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