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| Company logos of LG Chem and SK Innotvation |
By Kim Hyun-bin
The U.S. International Trade Commission (ITC) announced Monday that it would delay a ruling on its investigation of an industrial espionage dispute between LG Chem and SK Innovation to Dec. 10.
"Today's routine action by the International Trade Commission neither erases SK Innovation's misappropriation of LG Chem's trade secrets nor does it signal an outcome that might acquit this theft," Bert C. Reiser, counsel to LG Chem, said. "Today's delay notwithstanding, we remain extremely confident that the Commission will hold SK Innovation responsible for the theft and issue appropriate remedies to make LG Chem whole."
In February, an administrative law judge on the commission ruled that SK stole LG Chem's technology and later destroyed evidence to obstruct justice. Monday's decision is the second delay of a ruling since last week and was due to the COVID-19 pandemic.
SK says it is open to talks with LG to swiftly end the conflict between the two companies.
"Due to the delay, the trial has been prolonged, but SK Innovation will engage in procedures fairly and squarely," SK Innovation said. "However, to reduce uncertainties, we hope the two companies will deal wisely with the situation to swiftly end the conflict to be able to better concentrate on our businesses."
In April 2019, the U.S. manufacturing subsidiary of LG Chem and its parent company filed lawsuits against SK Innovation alleging the theft of trade secrets, tortious interference with prospective economic advantages and other claims.
Filed concurrently with the USITC and the U.S. District Court of Delaware, the suits alleged that SK Innovation gained access to LG Chem's proprietary secrets on batteries for electric vehicles (EVs) by hiring dozens of highly skilled employees from the firm. SK allegedly used this illegally obtained information to gain market share in the global EV market.
LG Chem claims SK Innovation also engaged in widespread, systematic document destruction to hinder the USITC's investigation into these allegations.
In February, Administrative Law Judge Cameron Elliot issued an initial determination granting LG Chem's motion for default sanctions against SK Innovation. In particular, Elliot found that the record "overwhelmingly" showed that SKI destroyed evidence that was "relevant to the issues in the investigation … with the intent to hide evidence of trade secret misappropriation."
He further found that SK intentionally failed to comply with his order to partially remediate its destruction of evidence.
