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| Better known as LX, state-run company Korea Land And Geospatial Informatix Corporation filed a complaint against LG Group with the Fair Trade Commission, April 14, over LG's plan to name its spin-off entity LX Holdings. Korea Times file |
By Yi Whan-woo
LG Group said this week that it has not changed its decision to name a holding company that it will "spin-off " May 1, LX, amid an ongoing dispute over "infringement of copyright" with the Korea Land And Geospatial Informatix Corporation that has used the "brand" for some time.
"We don't see any problems in our plan for the launch," an LG Group media officer said in relation to a complaint filed by the corporation against LG Group with the Fair Trade Commission (FTC), April 14.
Operating under the Ministry of Land, Infrastructure and Transport, the state-run corporation is better known as LX to the public.
The complaint came after LG announced in March to separate four affiliates and set up a new holding company named LX Holdings.
LX Holdings will control the four affiliates ― LG International, LG Hausys, Silicon Works and LG MMA ― with Koo Bon-joon, an uncle of the current LG Group Chairman Koo Kwang-mo being the inaugural chief.
The four LG affiliates will be rebranded as LX accordingly.
LX said LG's move infringed upon its trademark and warned it would take legal action if certain conditions were not met.
"From our perspective, nothing is against the law. We've consulted our lawyers in advance before coming up with the name LX Holdings," the LG media officer said.
In a separate statement, LG Group said it finds LX's move regretful, noting the two sides are in the early stages of talks to settle the dispute and that it could be resolved amicably through a one-on-one dialogue between their chiefs.
LG Group also argued the businesses of the two companies do not overlap and that sharing the same brand name should not cause any problems.
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| GS, the country's No. 8 conglomerate, was spun off from LG along with LS and LIG. The spun-off entities names follow an alphabetic initials-styled naming convention. Korea Times file |
For spun-off LG units, it has been common to use at least one of the two of conglomerate's naming conventions as seen from the cases of GS, LS and LIG.
Asked about the complaint, LX said it did what it had to as a public organization.
"We do not want to press a private company whatsoever What we are concerned over is any damage to our reputation as a public entity and we are open to discussion as long as LG presents measures to allay our concerns," said Song Myoung-hoon, a public relations officer of the state company. "LG, however, has fallen short in meeting the demand and that we will take the case to court and other legal institutions."
During a press conference, April 6, LX President Kim Jeong-ryeol warned of legal measures to be taken if LG Group fails to comprise on the corporate brand issue.
LX argued the name duplication could create confusion among the public. It also argued that its years of efforts in building a brand image as a public organization will be affected.
The company changed the signs and promotional images displayed at its 12 local headquarters and 169 regional offices, spending 33.2 billion won ($29.7 million) to promote its brand to date.
Meanwhile, some industry sources said LX is allegedly trying to divert attention among their workers from strained leadership between their two presidents.
Kim Jeong-ryeol has been serving his term since September 2020, after his predecessor Choi Chang-hak was sacked for allegedly mistreating his driver.
Choi, however, returned in March, after being found not guilty by a court, leaving LX with two leaders until his term ends in July.
LX said he mostly spends time visiting local headquarters and regional offices.
