Advanced Facilities Efficient ProductionAccording to reports, on May 20 this year, LG InnoTek sold 1968 LED-related patents to a company in Suzhou, China.
Although this company has a registered capital of 80 million yuan, it does not produce any LED-related products. Outsiders speculate that the company may value the value of patents and make future plans or resell them after they have appreciated in value.
In addition to the previously acquired patents registered in other regions, the Chinese company holds as many as 10,000 original LG LED patents.
According to South Korean law, after the company has made profits from selling patents, it needs to share the profits with original employees. LG expects to spend a portion of the money to reward employees who contribute patents.
In fact, LG InnoTek decided to close its LED business in October last year. Throughout 2020, they have been working on the sale of patents and factory equipment, targeting Chinese companies.
According to data, in the past 12 years, its LED business has suffered losses in successive years, with a cumulative total of 1 trillion won (approximately 5.76 billion yuan). However, LG's long-term research and development of technology and equipment on UV LEDs has attracted many potential buyers after the announcement of the "selling" decision, with a total asset valuation of nearly 600 million yuan.
UV LEDs are mainly used in biomedicine, anti-counterfeiting identification, purification (water, air, etc.), sterilization and antivirus fields, computer data storage, and military (such as LiFi invisible light confidential communication).