LG in sabotage probe

lg-ultra-hdProsecutors raided the headquarters of LG as part of a probe into whether the South Korean company had damaged the washing machines of rival Samsung Electronics at retail stores in Germany.

Apparently there is an increasingly bitter rivalry between the two companies which compete in home appliances, TVs and smartphones.

Samsung had asked the Seoul Central District Prosecutors’ Office to investigate LG employees who were seen deliberately destroying several of its premium washing machines on display at two stores in September ahead of the IFA electronics show in Berlin.

Investigators searched the Seoul offices of LG home appliance head, Jo Seong-jin, and others and secured documents and computer hard disks related to the IFA fair, Yonhap News Agency said. They also combed through LG Electronics’ home appliance factory in the southeastern city of Changwon and gave it a rigorous parting.

LG said that it regretted today’s raid.

“Our company – a global company – was raided as a result of a rival’s unilateral and excessive claims, and we are concerned that this would seriously undermine our corporate activities and external credibility,” it said.

It appears that Samsung is a little worried that someone might sabotague its stands at the forthcoming CES show.

Samsung sued LG Electronics employees after the incident in Germany, and LG said the company has counter-sued Samsung employees.

Prosecutors banned LG’s Seong-jin from leaving the country ahead of the Consumer Electronics Show (CES) to be held January 6.