SEOUL - LG Electronics Inc. has emerged victorious in a price-fixing lawsuit against two Taiwanese display manufacturers, AUO Corp. and HannStar Display Corp. The Seoul Central District Court ordered the companies to pay a combined 32.8 billion won (US$25.1 million) in damages to LG Electronics for their involvement in fixing the prices of LCD panels.
According to Yonhap News Agency, the lawsuit, initially filed by LG Electronics and its six overseas branches in January 2014, accused AUO, formerly known as AU Optronics Corp., and nine other LCD manufacturers and distributors of colluding to fix prices and supply of thin-film-transistor LCD panels. These actions reportedly took place during "crystal meetings" held in Taiwan from 2001 to 2006. LG Electronics, as a purchaser from these firms, had suffered financial damages due to inflated LCD prices resulting from the collusion. While LG initially filed suits against five Taiwanese companies, it later narrowed the case to focus on AUO and HannStar. The court recognized the liability of the Taiwanese firms in limiting fair competition through their collusion, ordering AUO to pay 29.1 billion won and HannStar to pay 3.79 billion won in damages to LG and its branches. With interest, the total compensation amounts to 53.5 billion won for AUO and 6.97 billion won for HannStar. The court also dismissed the defendants' claim that the case should be adjudicated in Taiwan, citing the practical connection of the case and the parties involved with South Korea.