LG Innotek sells 10000 led patents to Chinese companies

It is reported that on May 20 this year, LG Innotek sold 1968 LED related patents to a company in Suzhou, China.

Although the company has a registered capital of 80 million yuan, it does not produce any LED related products. It is speculated that the company may value the patent value, make future layout or resell it after appreciation.

In addition to the previously acquired patents registered in other regions, the Chinese company holds as many as 10000 original LG led patents.

According to South Korean law, the company needs to share the profits with the original employees after making profits from the sale of patents. LG is expected to give some money to reward the employees who contribute patents.

In fact, LG Innotek decided to shut down its led business in October last year, and they are working on selling patents and factory equipment to Chinese companies throughout 2020.

Statistics show that in the past 12 years, its led business has suffered losses for consecutive years, reaching 1 trillion won (about 5.76 billion yuan). However, LG's long-term R & D technology and equipment on UV LED attracted many potential buyers after the announcement of the "sell yourself" decision, with a total asset valuation of nearly 600 million yuan.

UV LED is mainly used in biomedical, anti-counterfeiting identification, purification (water, air, etc.) sterilization and anti-virus field, computer data storage and military (such as lifi invisible light secure communication) and so on.