Samsung, LG still in battle over theft of AMOLED technology

Tech giants Samsung and LG Display have again clashed over Samsung’s claim that its rival stole its key technologies used in manufacturing large AMOLED screens.

While Samsung Display strongly requested that its competitor offer an official apology and warned it will proceed with all legal methods for counteraction, LG denied its allegations, stating that it is not responsible for any of the claims.

Both parties held press conferences Monday, a day after it was reported that 11 people, including a former Samsung Mobile Display executive, Samsung researchers, LG Display and its affiliate employees were charged by the Suwon Prosecutors’ Office without detention on Sunday.

The case was first raised by Samsung Display ― which was then Samsung Mobile Display ― in April with the company saying that LG stole its key technologies related to AMOLED by attempting to hire its former executive surnamed Cho.

Cho, who took home data involving Samsung’s small mask scanning technology and the details of AMOLED display production processes, was given a consulting position at an LG affiliate to fulfill his two-year job transfer period from Samsung to LG Display.

The executive is accused of delivering the technology information, taken from his former Samsung colleagues, to LG Display seven times through e-mails and text messages since May of last year.

“We will make firm counteractions regarding the issue with a civil suit, which includes damage compensation, being the action most likely to follow,” said Samsung Display executive Shim Jae-boo.

He also said that LG Display was responsible not only for stealing its key technology but also for improperly recruiting its workforce.

“We confirmed that the former Samsung executive surnamed Cho received up to 190 million won after giving way the key data,” he said.

LG Display, however, argued against Samsung’s statement, further elaborating that it did not get the data from that executive.

“The prosecutors have not arrested the former Samsung executive because the technology theft has not been proved but it seems they are looking into whether there were any leaks of Samsung’s business secrets,” according to LG Display executive Lee Bang-soo.

Lee said the firm plans on hiring Cho, the former Samsung executive, once his alleged charges are all dismissed.

“Considering the fact that none of the LG officials involved in the matter were charged, we could come to a conclusion that it was not such a significant case and that Samsung Display has exaggerated the meaning, scale and seriousness of it,” he said.

“LG and Samsung have grown into global business groups through competition in the field of electronics and this should have a focus on technology development rather than a fight staged just to drag each other down.”

By Cho Ji-hyun (sharon@heraldcorp.com)