Posted on Facebook: "Expecting Stronger Solidarity and Cooperation Between Companies, Government Provides Full Support"
[Asia Economy Reporter Kim Hyewon] Prime Minister Chung Sye-kyun expressed his welcome regarding the dramatic agreement between LG Energy Solution and SK Innovation that ended the electric vehicle battery dispute.
On the 11th, Prime Minister Chung posted on his Facebook, "The battery dispute between LG and SK has come to an end," adding, "Although late, I greatly welcome this."
He stated, "There was concern that the fierce global competition in the battery market and the dispute between the two companies might lead not only to losses for the companies but also to a weakening of the national industrial competitiveness," and added, "I am pleased that various efforts for dispute resolution have led to a good outcome."
He continued, "As a former 20-year businessman and Minister of Trade, Industry and Energy, I have a deep attachment to the development of our companies and industries," and urged, "I hope this occasion will solidify the status of K-battery and deepen solidarity and cooperation among companies." He also added, "The government will move forward in full support to strengthen the K-battery industry and electric vehicle competitiveness."
Earlier in January, Prime Minister Chung had urged a swift agreement regarding the prolonged battery dispute between the two companies, saying, "It only benefits others. It is shameful." At that time, he also said, "I hope both companies will quickly resolve this issue, and since the future of K-battery will be greatly open, they should not fight over a small pie among themselves but actively move toward the large global market."
The government also expressed strong support for the conclusion of the battery dispute between the two companies. The Ministry of Trade, Industry and Energy stated, "We hope this incident will strengthen solidarity and cooperation throughout the secondary battery industry," and added, "Now is the time to prepare for the future in response to fierce global competition, and the government will actively promote support to enhance the competitiveness of the secondary battery industry."
On this day, SK Innovation and LG Energy Solution agreed to end the battery dispute ongoing at the U.S. International Trade Commission (ITC). Accordingly, the litigation process that began in April 2019 has been concluded.
Through this agreement, SK Innovation will pay LG Energy Solution a total of 2 trillion KRW in present value terms (1 trillion KRW in cash + 1 trillion KRW in royalties) according to the agreed method, withdraw all related domestic and international litigations, and agree not to pursue any additional disputes for the next 10 years.
SK Innovation President Kim Jun and LG Energy Solution President Kim Jong-hyun said, "We have agreed to healthy competition and friendly cooperation for the development of the electric vehicle battery industry in both Korea and the U.S.," adding, "In particular, we will jointly strive for the battery supply chain reinforcement and eco-friendly policies promoted by the Biden administration."
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