Scandal at IFA

Europa-Center, a shopping mall on the west side of Berlin, Germany, where the incident took place.
Europa-Center, a shopping mall on the west side of Berlin, Germany, where the incident took place.

 

Samsung Electronics said on Sept. 14 that it has requested an investigation into the senior officials of LG Electronics, including Jo Seong-jin, CEO of LG's home appliance business unit, on suspicion of intentionally damaging its washing machines at a shopping mall in Germany.

The incident occurred on Sept. 3 in Berlin just ahead of the IFA trade show, where the two South Korean IT giants competed for the spotlight in home appliances. An employee at the home appliance mass-merchandiser SATURN Berlin Europa-Center called the police, saying that he saw LG officials damaging the appliances, specifically pressing down on the doors until they wouldn't close properly.

The case was reportedly closed after the police arrived at the shop and the LG officials agreed to buy all of the damaged products.

Samsung Electronics, however, asked the prosecution to investigate the case in Seoul on Sept. 11, saying that the damage was deliberate. Samsung said that it confirmed through CCTV footage that LG officials had also broken other Samsung washing machines at SATURN Berlin Steglitz, another location of the German electronics mass merchandiser, in the same way.

LG said in a statement, “It is common sense that company officials, including executives, wouldn't have needed to get involved in such conduct if the intent was to damage a product of a particular company to hurt the brand's image.” Denying the accusations, LG said that it will actively cooperate in the investigation.

Samsung said in a statement that it had not pressed the issue in Germany in order to avoid damaging Korea's reputation abroad. But it wants a judgment about the event here at home in order to maintain fair competition.

Both of the Korean tech giants already announced that they would achieve the number one position in the global home appliance market. Samsung and LG currently rank second and third in the market, following Whirlpool. They have also fought over a larger capacity refrigerator, greater market share for air conditioners, and patent rights for display products.

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