Samsung and LG have been mooching cheap industrial electricity since 2004, heavy fines may follow

Samsung and LG have been mooching cheap industrial electricity since 2004, heavy fines may follow
The South Korean media have been lit abuzz by a new report that claims that Samsung and LG, among others, have been 'stealing' electricity from the nation's power grid since all the way back in 2004. The report cites information provided by the Korea Electric Power Corporation, the largest electric utility provider in South Korea.

The new allegations are pointing the finger at two of the biggest players in the mobile space for abusing the country's cheaper industrial network. Industrial power in South Korea is only supposed to be used for the needs of manufacturing, mining and production equipment and facilities usage. The problem stems from the fact that two companies have been using it for their R&D and office needs, which is strictly illegal.

Before you're tempted to downplay the scale of the savings that both Sammy and LG have managed, you should probably think twice – while this is yet to be proven and discussed at detail, it is very likely that the companies raked in an obscene amount in savings. According to the report, if these charges are upheld, the duo will have to pay double the amount they saved by cheating. Ouch! Then again, if this ends up being confirmed, it sure will raise questions as to how the two companies were able to keep this under the lid for nearly a decade.

source: MyDrivers via UnwiredView

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30 Comments

1. cezarepc

Posts: 718; Member since: Nov 23, 2012

Could be that the R&D office is within the manufacturing area?

17. BillyG

Posts: 305; Member since: Sep 24, 2012

i bet shamesung mooch those cheap electricity to power tons of their Copy machines in the R&D office...

30. MobileKicker

Posts: 212; Member since: Sep 19, 2013

Because Samsung and LG are poor companies They can't afford high electricity

2. mobi_user

Posts: 152; Member since: Jun 18, 2013

This is an example of bad money and corruption. No statement from the fanboys yet. proves only that this site is infested with fanboys

3. rusticguy

Posts: 2828; Member since: Aug 11, 2012

This has nothing to do with fanboys. Theft of electricity at this scale (corporate) cannot occur without collusion. Who know this enws is leaked ebcause someone didn't get their due share of the "loot". Media is one of the most "Corrupt" establishments world over @ Yellow Journalism.

5. InspectorGadget80 unregistered

Unlike Apple BANNING products paying their way through courts.

4. newbey123

Posts: 696; Member since: Mar 19, 2012

So sad, I always knew Samsung was corrupt and would never give my money to a company like that. Not really that hard since their products are cheaply made and low grade quality. All that is dark eventually comes to light!

18. Jason2k13

Posts: 1445; Member since: Mar 28, 2013

so it clearly states LG aswell, but your only blaming it on samsung? typical

19. freebee269

Posts: 541; Member since: Aug 10, 2012

looks to me he's talking about samsung specifically but not blaming the whole thing on samsung. there's a difference.

23. saffant

Posts: 274; Member since: Jul 04, 2011

Wow, how can you be that thick in the head? Did you forget how Apple steals ideas (videos as well) and claims them as their own innovation? Did you forget apple's poor treatment of the workers in China? Did you forget Apple's cheap lawsuit tactics to sue anyone who opposes them? Get real.

25. a_merryman

Posts: 749; Member since: Dec 14, 2011

Apple doesn't treat workers poorly in China, the companies they contract out to in order to assemble the devices do however. But you know, lets not talk about how all the other OEMs use those same companies in order to build their devices too. If you really care about chinese workers not getting exploited and working in horrible conditions, you could possibly buy the Moto X (made in the USA) or just stop buying electronics made in those factories entirely, I think Brazil has some Foxconn factories and the like....maybe try to find a phone that is made there? As for the lawsuits, the majority of the lawsuits Apple is tied up in are on the receiving end from patent trolls. And of course, the industry as a whole currently is very happy to sue each other....you'd be hard pressed to find a major phone manufacturer that isn't suing another one or recently just settled a lawsuit.

7. datsyuk

Posts: 180; Member since: Jan 11, 2012

Really guys. These companies profit an insane amount and do stupid things like this... Lol. Like they don't have enough money or something.

21. Razrman

Posts: 100; Member since: Dec 05, 2011

Sooo, Samsung gets fined in Taiwan for slamming HTC and now in it's own turf as well. lol

24. LikeMyself

Posts: 629; Member since: Sep 23, 2013

Means new phones will be priced twice now. Go to hell,ugly galaxies. Most previous phones were made of plastic, yes. But they had a unique design unlike same design for every smartphone of the company now in vogue! Plastic yes, but no to S3 being confused for s4 or Grand or all other phones of the company. Ugly Sam and LG.

26. a_merryman

Posts: 749; Member since: Dec 14, 2011

Man, I wish we punished companies who screw up in the USA like they punish companies in Korea. The banking industry here collapses the world economy and nobody goes to jail, they give out the ones responsible massive bonuses with taxpayer money used to bail them out, and the companies don't even get a slap on the wrist.

27. tedkord

Posts: 17094; Member since: Jun 17, 2009

Nail them both.

31. Taters

Posts: 6474; Member since: Jan 28, 2013

Hopefully South Korea shows blatant favoritism to LG and Samsung and just sweep this under the rug like how Obama swept the Apple ITC ban under the rug and the Taiwanese government fined Samsung without any real proof. Protect your money makers with extreme bias like every other country does South Korea!

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