2 Taiwanese display firms ordered to pay damages to LG for price-fixing

Two Taiwanese display makers have been ordered to pay a combined 32.8 billion won ($25.1 million) in damages to LG Electronics Inc. for fixing the prices of LCD panels, sources said Monday.

The Seoul Central District Court recently delivered the ruling in a compensation suit filed by LG and six of its overseas branches in January 2014 against AUO Corp. and HannStar Display Corp., both based in Taiwan.

AUO, formerly AU Optronics Corp., and nine other LCD manufacturers and distributors were accused of colluding to fix prices and supply of thin-film-transistor LCD panels during their monthly bilateral and multilateral gatherings, called the "crystal meeting," held in Taiwan between 2001 and 2006.

LG, a buyer from the firms, had initially filed a damages suit against five Taiwanese companies among the 10 colluders, claiming LCD prices inflated through the price-fixing caused financial damage. LG later dropped the suit against three of them, except for AUO and HannStar.

The court ordered AUO to pay 29.1 billion won and HannStar to pay 3.79 billion won in damages to LG and its overseas branches, recognizing the liability of the Taiwanese firms for limiting fair competition through collusion.

Including interest incurred, the compensations due for AUO and HannStar reach 53.5 billion won and 6.97 billion won, respectively.

The court dismissed the Taiwanese firms' claim that the suit should be judged in their country of origin, saying the case and the parties involved have a practical connection with South Korea. (Yonhap)