LG Display has filed a lawsuit against a former executive for alleged breach of duty amounting to 6.86 billion won (approximately $68.6 million). The company discovered suspicious circumstances during an internal audit and submitted a complaint to the police in February.
On October 14, LG Display announced through the Financial Supervisory Service's electronic disclosure system that it had filed the lawsuit against the former executive, identified only as Lee. The amount cited in the complaint is 6.859 billion won, which represents about 0.08% of the company's consolidated equity of 8.0728 trillion won as of the end of 2024.
LG Display explained that it found indications of potential breach of duty during its internal audit. However, it determined that it could not confirm specific facts through its own investigation and thus submitted the complaint to law enforcement. Both the occurrence and confirmation of the alleged breach were noted as February 10.
The Seoul Metropolitan Police's Financial Crime Investigation Unit has reportedly conducted searches at the former executive's home and office, seizing mobile phones and other relevant materials.
Another LG affiliate, LG Energy Solution, has also filed a complaint against the same former executive for breach of duty amounting to 646.85 million won. Combined, the allegations from LG Display and LG Energy Solution total approximately 7.5 billion won.
The former executive is accused of causing losses to the company by facilitating payments to a consulting firm in China linked to family members during their tenure. The police are investigating the actual execution of the consulting contract and the flow of funds.
However, the amounts disclosed are based on the allegations in the complaint, and the actual breach or final loss amount has not yet been determined. These figures may change depending on the outcome of the police investigation and subsequent legal proceedings.
LG Display stated, "We will fully cooperate with the investigation and take necessary actions in accordance with legal procedures," adding that it will provide additional disclosures if any confirmed or changed matters arise.
* This article has been translated by AI.
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