From "Sniping" to "Acknowledgment"... Samsung and LG Have Changed

Stop Mutual Defamation and Support the 'Alliance Theory'... End the War of Attrition and Focus on the Future

Han Jong-hee, Vice Chairman of Samsung Electronics and Head of the DX Division, is delivering the keynote speech on the 4th (local time) ahead of the opening of 'CES 2022,' the world's largest electronics and IT exhibition.

[Asia Economy Reporter Lee Hyeyoung] "(We are) keeping all possibilities open for purchasing OLED panels from LG Electronics." (Han Jonghee, Vice Chairman and Head of Samsung Electronics DX Division)

"(If Samsung Electronics) joins the OLED TV market, it would be a very welcome development." (Park Hyungse, Vice President and Head of LG Electronics HE Business Division)

The power struggle between Samsung Electronics and LG Electronics, which used to repeat at every major global event, has subsided this year. Both sides, who had engaged in relentless debates over TV displays and picture quality, have sequentially made public statements that are distinctly different from the past, lending more weight to the 'alliance theory.'

According to the industry on the 9th, Vice Chairman Han Jonghee of Samsung Electronics and Vice President Park Hyungse of LG Electronics expressed progressive stances toward each other during the world's largest electronics and IT exhibition, 'CES 2022,' acknowledging a different atmosphere than before.

The remarks were especially significant as they came from the two leaders who had been at the forefront of the 'TV war' between Samsung and LG. Over the past several years, Samsung and LG have been engaged in disputes over TV displays and picture quality.

Samsung had previously pointed out the burn-in issue of LG's organic light-emitting diode (OLED) technology, highlighting it as a technical flaw. In response, LG disparaged Samsung's QLED TVs, accusing them of pretending to be 'self-emissive' like OLEDs. In 2019, Vice President Park directly criticized Samsung's QLED 8K TV as "not a true 8K," sparking prolonged disputes.

Even at CES 2020, just two years ago, sharp confrontations continued. At that time, Han, then head of Samsung's Visual Display Business, declared, "We will never do OLED," dismissing any possibility of entering the OLED ecosystem.

The full-scale conflict between Samsung Electronics and LG Electronics spanned a decade, covering TVs, washing machines, refrigerators, air conditioners, trademarks, and advertising, escalating into legal battles and increasing consumer and market fatigue for nearly ten years.

Hyung-se Se Park, Vice President and Head of HE Business Division, LG Electronics

The atmosphere began to change around the first half of 2020. After mutually withdrawing complaints to the Fair Trade Commission regarding TV advertisements in June 2020, both sides showed signs of a shift. Following rumors of an alliance last year, this year they have reinforced the turnaround with messages of 'cooperation' and 'support.'

In particular, Samsung's decision to re-enter the OLED market led by LG by launching OLED-based QD (Quantum Dot) display TVs accelerated the alliance theory between the two companies.

At a press conference held on the 5th (local time) in Las Vegas, Han explained why Samsung did not showcase the anticipated QD-OLED TV at this CES, saying, "Samsung Display is mass-producing QD displays, but the desired quantity has not yet been achieved, so we excluded it from the exhibition."

Regarding market expectations that Samsung would source OLED panels for QD-OLED TVs from LG Display, he responded, "We have been purchasing panels from LG since the shortage of existing TV panels was severe," adding, "We are keeping all possibilities open for purchasing OLED panels."

The industry is offering positive forecasts that the two companies will end their exhausting disputes and build a competitive yet developmental alliance and cooperative relationship. This change aligns with the future-oriented innovative management emphasized by Samsung Vice Chairman Lee Jae-yong and LG Chairman Koo Kwang-mo, with expectations that as new business areas expand, more active strategic alliances breaking traditional practices will occur.

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