Prosecutors raided the LG Electronics headquarters on Friday to search for possible evidence related to the damaged washing machines of its rival Samsung in Germany.
Last September, the South Korean company accused the head of LG Electronics for damaging its high-end washing machines displayed in its Germany stores. Samsung immediately called for the Seoul prosecutors to investigate its rival for the act.
LG quickly denied the allegations, and said that it wasn't done intentionally. The argument began when a Samsung clerk called the police alleging that LG employees damaged the doors of four "Crystal Blue" washing machines worth $2,700 each.
LG confirmed the damage, but clarified that its employees were just doing market research when the accident happened; it then blamed the incident on the weak hinges of the door of Samsung's washing machines. This statement pushed Samsung, who initially did not press charges, to file a complaint against LG, as it seemingly tainted Samsung's brand image and implied that the washing machines were poorly constructed.
On Friday, the Seoul prosecutors raided the offices of LG Electronics head of home appliances, Jo Seong-jin, and other executives and confiscated documents and disks. They also inspected the company's factory in Changwon, Reuters reported.
"We regret today's raid by prosecutors," LG Electronics said in a statement.
"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.
In addition, Seong-jin was banned from leaving the country after failing to attend the prosecutors' invite for questioning. LG said that Seong-jin was busy with other commitments, and that's why he wasn't able to attend, according to the Financial Times.
Samsung refused to comment about the raid, and prosecutors were not available for interview.
