War of words intensifies between S. Korean battery makers before going to U.S. court

By Lim Chang-won Posted : May 2, 2019, 15:48 Updated : May 2, 2019, 15:48

[Gettyimages Bank]

SEOUL -- A war of words involving two South Korean battery makers, intensified after SK Innovation blasted LG Chem for hurting national interests with a lawsuit in the United States over intellectual property rights related to the production of rechargeable batteries for electric vehicles.

LG Chem, a petrochemical and battery-making arm of South Korea's LG Group, said earlier this week that it asked the U.S. International Trade Commission to ban SK Innovation's batteries in the American market and filed a lawsuit with a district court in Delaware. LG Chem accused SK Innovation (SKI) of developing rechargeable batteries with technologies leaked by transferred employees.

"We worry domestic issues raised abroad may damage national interests," SKI, a subsidiary of South Korea's third-largest conglomerate SK Group, said in a statement, insisting LG Chem workers would have gone to other countries if they are not hired by SKI. SKI also urged LG Chem to respect the freedom of choice.

LG Chem hit back with a fresh statement on Thursday that the real way for the good of national interests is to protect core technology and intellectual property rights. "If there are no proper sanctions against domestic companies for their violation of trade secrets, how can we prevent them in case of the same infringement by a foreign company?"

LG Chem insisted its battery business has been the result of active investment for nearly 30 years. "No company will make bold investments for the future if a latecomer is allowed to easily acquire trade secrets of a competitor without investing in technology."

SKI has invested heavily in its battery business. It is building a battery plant in Changzhou in China's southeastern Jiangsu province. SKI's battery plant in the United States will be built in Commerce in Jackson County, Georgia. German auto giant Volkswagen has selected SKI as the fourth strategic supplier of battery cells to cover its demand in North America.

 
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