In a lawsuit seeking to cancel Korea Hydro & Nuclear Power Co. Ltd.’s sanctions on LG Electronics for engaging in improper business practices (restricting LG’s qualifications to participate in bidding), Lee & Ko represented LG Electronics and successfully obtained judgment on all claims for LG Electronics.
This case was related to the manipulation of performance test results on nuclear power plant parts, an incident which had recently caused considerable controversy in Korea. Lee & Ko argued that not only were the products not defect but in fact LG Electronics had simply delivered the products without being aware that its subcontractor had manipulated the performance test results. Lee & Ko further argued that in such case, it is unreasonable to say that the “evident that it would harm fair competition or reasonable performance of a contract” element had been met to justify imposition of sanctions on LG. The court’s decision inthis case will be an important precedent for future disputes relating to administrative sanctions resulting from manipulation of performance test reports.