Investigators raided LG Display's headquarters after Samsung Mobile Display alleged that LG Display stole its technology for large OLED screens, according to a Korean Times article. in the Korean Times article Suwon District Prosecutors revealed that they made the raid to find evidence showing that the LG affiliate attempted to steal technology from Samsung Mobile Display. LG officials said they couldn’t comment on what the investigators searched for because of the ongoing investigation.
A former SMD researcher, identified as Cho, was indicted Wednesday on charges of leaking Samsung’s technology to LG. Cho is one of a dozen former and incumbent SMD researchers and LG Display executives who have been arrested for the technology theft since mid-April. Samsung Mobile Display alleges that Cho tried to get an executive position at LG Display and 190 million won ($168,000) in return for handing over Samsung Mobile Display's technology, called small mask scanning, which allows production of large-sized OLED televisions.
Cho started a consulting firm after retiring from Samsung Mobile Display last year. Samsung also alleges that Cho tried to sell the technology to a Chinese company after failing to land a job at LG Display. SMD claims that because of its market share the damages the firm will incur could reach 30 trillion won for the next five years.
LG Display has maintained that it has different OLED display technology from Samsung and doesn’t need information on Samsung's technology. LG Display indicated that it would sue Samsung for defamation. LG Display officials said they sent SMD a letter last month to protest SMD's alleged spreading of false rumors. The letter claimed that SMD has spread false rumors that LG Display executives systemically stole technology and lured key researchers from Samsung. The letter further claimed that these false rumors damaged the reputation of LG Display and its executives.
SMD officials said that the letter was not worth responding to and that the prosecution’s investigation and court rulings will reveal the truth. SMD also demanded LG Display apologize for the technology theft attempt last month.
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