LG, Woongjin clash over water purifier commercial

A water purifier commercial has become the latest source of tension between LG and Woongjin over air purifiers and cosmetics.

Woongjin Coway requested LG Electronics to stop airing its Healthcare water filter commercial, accusing it of slandering Woongjin products.

The LG television commercial says: “Water put in a plastic tank is for washing, not drinking.”

LG Electronics water purifiers use water tanks made of stainless steel, while Woongjin’s are fitted with plastic tanks.

“The use of the expression ‘water for washing’ can only be interpreted as a malicious attack targeted at our products,” a Woongjin official said. “They should stop advertisements that resort to backbiting instead of fair competition.”

The official warned that if LG refuses to accept the request, his company will consider all countermeasures including filing a suit with the Fair Trade Commission.

LG officials denied, however, any attempt to provoke its rival.

“Woongjin is overreacting. The commercial simply expresses that we use water tanks made of stainless steel, which are obviously cleaner than plastic ones,” an LG official said.

“Such an oversensitive response only shows that Woongjin is admitting its shaking status as a market leader.”

A number of tests showed that stainless-steel containers are more hygienic, he claimed.

Woongjin has maintained that business giants such as LG should not encroach upon the water purifier market. LG says Woongjin, with sales surpassing 1 trillion won, is a big company too.

A government-led panel for shared growth between large and small companies announced early this month a list of business areas that should be restricted to only small and medium-sized firms. Water purifiers were excluded, whereas kimchi, tofu and light emitting diode display panels made the list.

LG Electronics’ entry into the water purifier market in 2009 had existing medium-sized players including Woongjin, Chungho Nais, Kyowon and Tongyang keyed up, but the home appliance titan’s market share has been minimal.

LG officials have been secretive about its sales figures, but it is estimated that the company sold 66,000 units from market launch in April 2009 through last year. Woonjin sold over 1 million, Tongyang 260,000 and Kyowon 150,000 units in the same period.

By Kim So-hyun (sophie@heraldcorp.com)