Hitachi-LG Executives Plead Guilty to Price Fixing, Will Serve Jail Time

On Tuesday, the US Justice Department announced that the three executives of joint venture set up by LG Electronics and Hitachi Ltd. - Hitachi-LG Data Storage Inc. - have finally pled guilty over price fixing of optical disk drives.

The Hitachi-LG Data Storage Inc. has become the first company to have been charged by US prosecutors in this investigation. These three executives have been accused for rigging bids, in other words, fixing prices for various optical disk drives produced by HP, Dell and Microsoft.

According to the plea agreement, Young Keun Park, former chief marketing officer of the venture and Sang Hun Kim, one of the team leaders will be serving eight months in jail and another team leader Sik Hur will have to serve for seven months. On top of the jail term, each of them will be paying $25,000 as fine, reported Reuters.

Acting head of the Justice Department's Antitrust Division, Sharis Pozen, commented that, "The division will continue to pursue and prosecute those who participate in bid-rigging and price-fixing conspiracies that harm businesses and consumers in the optical disk drive industry."