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| LG Energy Solution CEO Kim Jong-hyun, left, and SK Innovation CEO Kim Jun |
By Baek Byung-yeul
The U.S. International Trade Commission (USITC) could postpone its final ruling over the legal battle between LG Chem and SK Innovation, slated for Dec. 10, once more, given the United States is facing rising COVID-19 cases and President-elect Joe Biden has started the transition of power, according to a top industry source, Tuesday.
LG and SK have been in a legal tussle since April 2019 as the former filed lawsuits with the USITC and a local U.S. court, claiming that the latter misappropriated and used its trade secrets for electric vehicle batteries by hiring its ex-employees.
The USITC already issued a preliminary ruling in favor of LG Chem in February. The trade commission was set to release its final ruling on Oct. 5, but postponed it to Oct. 26 and decided to delay it again to Dec. 10 without giving a reason.
Given the USITC has delayed its final determination several times, the legal battle has become a controversial one only in Korea, while the U.S. has shown no interest in the suit.
"It looks like only Korean people are paying attention to the legal battle as the case involves two of the country's largest conglomerates," an official said citing the example of the ongoing lawsuit between Korean drug makers Medytox and Daewoong Pharmaceutical. As seen in the LG-SK feud, the USITC has delayed its final ruling on a dispute over a botulinum toxin strain between the two drug makers.
"Though the USITC has delayed its final ruling to Dec. 10, it seems the trade commission is not interested in the legal lawsuit at all. We need to take a look at the LG-SK legal feud in the same context of the lawsuit between Medytox and Daewoong," the official added.
LG Energy Solution, a spin-off of LG Chem's battery business unit, will now be in charge of the prolonged lawsuit instead of LG Chem. The battery business unit became a standalone company as of Dec. 1, with Kim Jong-hyun, head of LG Chem's battery business unit, taking the wheel.
Attention is focused on whether the two battery firms can settle before the USITC makes its final ruling but another industry official said it will be difficult for them to reach an agreement as there has been bad blood between them.
"It is unlikely that LG will accept SK's settlement offer because of the bad blood that exists between them. But LG Energy Solution is very eager to resolve the issue as soon as possible because the newly established battery company is urged to minimize legal risks in order to draw more investments," the official said.
Officials from both LG and SK said they do not know whether the USITC will postpone the ruling once again.
Industry officials said legal representatives from the two sides will try to more actively negotiate in order to reach an agreement. But it seems that time is not on the side of SK Innovation because SK is currently investing billions of dollars to build an EV battery plant in the state of Georgia. LG Chem also operates an EV battery venture with General Motors in Michigan. If SK loses the suit, the USITC could halt its plants' operation.
