Battery Dispute Spreads to Domestic and International Politics... What Was Said?

After 2 Years of Sharp Domestic and International Disputes Following the 2019 ITC Complaint
Both CEOs' Remarks Draw Involvement from US Politicians and Korean Prime Minister

[Asia Economy Reporter Choi Dae-yeol] On the 10th (local time), the U.S. International Trade Commission (ITC) ruled in favor of LG in the trade secret infringement lawsuit between LG and SK. The case was initially filed in April 2019, followed by a preliminary ruling in February last year, and the final decision came after more than a year. As the 3rd and 4th largest business groups in Korea were sharply clashing, and interest in the electric vehicle market had recently increased, various opinions circulated not only between the two companies but also among those around them.

Shin Hak-cheol, Vice Chairman of LG Chem, is giving a greeting at the signing ceremony of the secondary battery industry promotion industry-finance cooperation program held in December 2019 at Magok LG Science Park in Gangseo-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

"LG Chem's secondary battery business, currently the world's top level, is the result of nearly 30 years of bold investment and perseverance since the early 1990s. This lawsuit is an inevitable measure to strictly respond to unfair acts by competitors and to protect core technologies and intellectual property secured through long-term research and massive investment."

This was said by Shin Hak-cheol, Vice Chairman of LG Chem, when LG Chem filed a lawsuit against SK Innovation with the U.S. International Trade Commission (ITC) on April 30, 2019. Prior to that, since 2017, LG Chem had warned that its employees were moving to SK Innovation and leaking core technologies. They did not hide the speculation that the reason a technologically inferior latecomer was able to increase global customers in a short period was because their personnel and technology were taken away.

"This lawsuit is a legitimate action to protect core technologies and intellectual property unrelated to the trade secret infringement case LG Chem filed at the end of April. (Omitted) Although we were aware of patent infringement, we had held off on legal action in hopes of contributing to economic development through fair competition among domestic companies and the development of the industrial ecosystem, but we could no longer delay and thus filed the lawsuit."

This was said by Yoon Ye-seon, then head of SK Innovation's battery business, on August 30, 2019. SK Innovation filed lawsuits against LG Chem and LG Electronics at the ITC and federal court, alleging patent infringement. Four months earlier, LG Chem had filed a lawsuit against SK Innovation at the ITC, but Yoon drew a clear line, saying the two cases were unrelated. However, several rounds of legal battles between the two companies followed, marking the start of a 'strong versus strong' phase.

Kim Jun, President and CEO of SK Innovation

"Trade secret infringement lawsuits are particularly sensitive to acts of evidence destruction. This lawsuit faced considerable difficulties due to evidence destruction and violations of forensic orders, which amounted to contempt of court."

In February 2020, the U.S. ITC decided on an early loss for SK Innovation. The ruling released the following month emphasized that SK had destroyed or allowed the destruction of necessary evidence during the trial process, highlighting that such actions were wrongful.

"Both companies have greatly contributed to economic growth and regional job creation across the United States. If one company receives an unfavorable ruling at the ITC, it will negatively impact the U.S. economy and public interest. (Omitted) We respectfully urge finding a friendly and responsible resolution."

This is part of a letter sent in December last year by three legislators from the U.S. states of Georgia and Tennessee to the CEOs of both companies. These legislators represent areas where SK Innovation's battery plants and Volkswagen's plants, which receive SK batteries, are located. The letter was sent to both companies during the period when the final decision was postponed several times after SK's early loss ruling in February of the same year.

Prime Minister Chung Sye-kyun is speaking at the Broadcast Journalists Club debate held on the 28th of last month. At that time, Prime Minister Chung expressed his opinion on the battery dispute between SK and LG.

"The litigation costs amount to hundreds of billions of won, and if the two companies keep fighting, it only benefits others. The U.S. political circles are also urging a quick resolution, which is embarrassing." "It would be better not to engage only in legal disputes but to resolve this quickly."

This was a message repeatedly delivered by Prime Minister Chung Sye-kyun targeting the two companies in late last month and early this month. As global competition has intensified, he urged the two companies to reach an agreement and stop the exhausting disputes. It is reported that from the early stages of the lawsuit in 2019, the Ministry of Trade, Industry and Energy and other authorities attempted mediation, but there was no significant progress. However, there were also opinions that it was inappropriate for the highest levels of government to directly intervene to urge a settlement regarding allegations of intellectual property infringement.