SK Innovation said on Friday at its shareholders’ meeting that it cannot accept demands made by LG Energy Solution in the pair’s settlement negotiations after the ruling made by the International Trade Commission (ITC).
SK Innovation director Lee Myoung-young said it was impossible to accept demands that would make the continuation of its battery business in the US pointless or drastically reduce its business competence.
SK Innovation CEO Kim Jun was absent from the shareholders’ meeting. Kim, together with board chairman Kim Jong-hoon, is working to stop the ruling from the ITC coming into effect.
The commission in February ruled in favor of LG Energy Solution’s argument that its trade secret was stolen by SK Innovation. It ordered a 10-year import ban against SK Innovation in its final ruling. The judgment will need be reviewed by President Joe Biden to come into effect. SK Innovation is hoping he vetoes the ruling.
Lee said ITC accepted that it was unclear what the trade secret was in the lawsuit. Despite this, the commission accepted LG Energy Solution’s “vague arguments”, citing SK Innovation’s insufficient management of related documents, the director said.
SK Innovation will work hard to protect the value of the company and those of shareholders in the remaining legal proceedings going forward, he added.
The company has hired former attorney general Sally Yates as an advisor to the case. The state of Georgia is requesting that the two South Korea companies settle their lawsuit.
The pair has been negotiating for a settlement but have so far failed to reach an agreement. SK has proposed that it pay under 1 trillion won in damages, while LG is demanding up to 3 trillion won.
SK also took shots at LG’s recent involvement in the recall of Hyundai Kona EV. LG had supplied the batteries for the car model which saw dozens of unit catch fire worldwide. SK’s batteries have never cause battery fires so far and is known for its stability and quality to customers, the company claimed.