One of LG Electronics top managers has been indicted on a charge of intentionally damaging washing machines made by rival Samsung Electronics ahead of a trade show in Germany.
Jo Seong-jin, LGs head of home-appliance division, was formally accused of deliberately damaging several “Crystal Blue” washing machines by South Korean prosecutors.
The high-end products, priced at $2 000, were vandalized at retail shops in Berlin. The incident took place in September ahead of the IFA show.
Mr. Jo has been charged with obstruction of business and defamation.
“It is questionable whether there is sufficient evidence to prove that the president of a global company deliberately destroyed the machines where employees of the competing company were present,” LG said in a statement released Sunday, citing Ham Yoon-keun. a lawyer for Mr. Jo.
Mr. Jo also contested the accusations that he damaged the washing machines, saying that Samsung workers were observing him and his actions.
Additionally, LG pointed to a YouTube video footage taken from the surveillance cameras from a shop in Berlin, where Mr. Jo and other LG officials are seen walking around the facility, opening and closing doors of washing machines.
However, soon after Samsung claimed that LG executives broke the doors on several “Crystal Blue” washing machines at two shopping centers. LGs crosstown rival said the move was aimed at acquiring an advantage amid severe competition in the home-appliance business.
Following the claim and an interference from German authorities, LG agreed to pay for the “accidental damage” inflicted on four washing machines, but the company also criticized the quality of Samsungs products.
However, Samsung filed a complaint over the criticism, which LG contested.
This is the latest in a long line of disputes between the two companies, which are South Koreas biggest electronics makers and compete against each other in almost every area, including smartphones and televisions.
Previously, Samsung and LG have been involved in disputes over refrigerator capacity, LCD patents and OLED technology, which surprisingly was settled outside the courtroom.
The two companies have been long-standing rivals, but Samsung has pulled ahead in some areas, including televisions, where the company is largest manufacturer in the world and is preparing to launch a smartTV with its own-developed operating system dubbed “Tizen”.
LG Electronics lost 0.83% on Monday and closed at 59 500 in Seoul, marking a one-year decrease of 4.80%. The company is valued at ₩9.82 trillion.
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