SK Innovation Dismisses LG's Compensation Proposal
LG Energy Solution has recently proposed a comprehensive compensation method to SK Innovation to end their dispute over electric vehicle battery technologies.
LG Energy Solution suggested that SK Innovation may pay compensation in the form of stocks and royalties, not lump sum cash.
The company’s proposal was based on a recent agreement between botulinum toxin producers in Korea and the United States.
"The botulinum toxin market is one-tenth of the lithium-ion battery market and the settlement money was 400 billion won," said Jang Seung-se, executive director of LG Energy Solution, in a conference call on March 5.
Medytox and Daewoong Pharmaceutical had fought a bitter legal battle for several years over Medytox’s claim that Daewoong Pharmaceutical stole its botulinum toxin production technology. Recently, the U.S. International Trade Commission ruled in favor of Medytox, putting a 21-month import ban on Nabota, a botulinum toxin product from Daewoong Pharmaceutical. The import ban was withdrawn as Daewoong’s U.S. partner, Evolus, agreed to pay US$35 million in cash, royalties on Nabota sales, and a 16.7 percent stake in it to Medytox and its U.S. partner, Allergan.
LG Energy Solution mentioned the botox agreement to put pressure on SK Innovation, which remains passive towards reaching an agreement by paying compensation even after the ITC ruling. LG Energy Solution is reportedly demanding about 2 trillion to 3 trillion won in damages.
SK Innovation is still adamant that all it can give to LG Energy Solution is 500 billion won. It is moving to ask U.S. President Joe Biden to exercise his veto over the ITC ruling. An agency under the direct control of the U.S. President, the ITC does not specify the amount of damages between the two parties in a dispute.