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Employees of LG Electronics have been accused of corporate spying by fellow Korean electronics giant — and fierce competitor — Samsung. The dispute is related to display technologies for mobile devices such as smartphones, for which Samsung has 98 percent worldwide share.

One of the employees, according to Korea Times, was a key engineer in Samsung’s development of AMOLED technology (Active-Matrix Organic Light-Emitting Diode). He has since become an LG employee, violating (Samsung claims) the non-compete clause in his employment contract.

AMOLED technology, or an even more advanced variant known as Super-AMOLED, is used in Samsung’s smartphones such as the Galaxy S series, helping the company to sell more than 50 million smartphones in the second quarter of 2012.

Samsung has demanded an apology from LG and asked a Korean judge to impose a 10 million won/day penalty (about $10,000 USD.) In addition, Samsung wants assurances from LG that the company will not poach its workers in the future.


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According to Bloomberg, LG says that any intelligence gained from former Samsung engineers was “widely known in the industry” and not a trade secret.

LG is countersuing, alleging defamation.

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