By Kim Tae-jong
The nation’s anti-trust regulator imposed a fine of 85 million won on LG Electronics, Korea’s second-largest consumer electronics maker, Tuesday, for blocking and on-site inspection.
According to the Fair Trade Commission (FTC), employees from the appliance manufacturer attempted to hide and destroy critical evidence when FTC investigators were trying to collect data to determine if the company was engaged in unfair business practices.
The on-site inspection came amid allegations that it had supplied products to its affiliated retailer, Hi Plaza, at much lower prices than to other non-affiliated stores.
The FTC said employees at the marketing division located in Junggu, downtown Seoul, hid external storage devices in an executive member’ office and locked the room right before FTC investigators started to conduct a search.
When they were asked to unlock the door, they attempted to secretly move the devices to other rooms. One of managers was also found destroying critical data in a storage device by using a deleting program, despite repeated warnings.
The FTC imposed a 50 million won fine on LG Electronics and fined two employees 15 million won each. Another employee who hid external storage devices was also fined 5 million won.
According to related laws, corporations attempting to hinder, refuse or dodge investigations launched by the FTC can be fined up to 200 million won, while employees or executives are subject to a fine of up to 50 million won.
The FTC said it will take a stern measure against any illegal activities that attempt to disrupt its inspections. It also said it will soon announce the investigation result on the issue of the company’s alleged unfair trade practices.
“We will take every countermeasure to root out illegal attempts to tamper with our investigation,” an FTC official said.
According to the FTC, there have been incidents where employees systematically obstructed their on-site probe.
Technology giant Samsung Electronics was fined 400 million won, the biggest fine ever levied by the watchdog, last March for attempting to block an investigation into price-fixing allegations.
Shortly before that, the watchdog fined CJ Cheil Jedang, Korea’s top food company 340 million won on similar charges.
Most recently, the FTC imposed a fine of 290 million won on SK C&C employees and executive members who attempted to obstruct their on-site investigation into alleged unfair inter-subsidiary dealings.
Meanwhile, LG Group’s key affiliate, LG Display, is in hot water as its rival Samsung Display has vowed to continue its legal fight with it after the prosecution charged 11 former senior and low-ranking technicians over involvement in the leak of cutting-edge OLED technology to LG.
According to prosecutors, information on the technology was sent via e-mails on seven separate occasions by a 45-year-old former Samsung Display technician seeking to join LG Display. Samsung now argues LG management organized the “crime” to win the competition with its rival.
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