Three ex-LG New Zealand staff guilty of destroying evidence in anti-competitive investigation

• The Commerce Commission filed criminal charges against three former LG New Zealand staff after evidence was destroyed during an investigation.
• In 2020, the Commission opened an investigation into potential resale price maintenance (RPM) in the supply of televisions in New Zealand.
• The investigation concluded with the Commission sending a compliance letter to LG and a warning to Panasonic.

Two former managers of LG New Zealand who pleaded guilty for their involvement in destroying evidence during an investigation into potential anti-competitive conduct can now be named.

Dowan Kim, the former country manager of LG New Zealand, and Nicholas Clarke, a former LG key account manager, lost name suppression more than three years after charges were filed by the Commerce Commission.

Both Kim and Clarke were discharged without conviction, with a third former staff member who has permanent name suppression.

The Commission opened an investigation in 2020 into potential resale price maintenance (RPM) in the supply of televisions in New Zealand. RPM, which is a form of anti-competitive conduct, prevents resellers from setting their prices independently and can lead to increased prices for consumers.

As part of the investigation, LG was requested to provide the Commission with documents recording communications between various persons.

However, LG’s response omitted instant messages, such as those sent via WhatsApp.

The Commission queried that omission and compelled LG to provide instant messages relevant to the notice.

In January 2021, the Commission received whistleblower information that Kim had instructed two staff members to delete material considered “an issue” the day after LG received the Commission’s letter querying the failure to include instant messages.

The Commission said Kim gave this instruction following a call from an offshore senior manager at LG.

Kim maintained in the proceedings that he merely passed on the instruction to delete messages from the offshore senior manager. LG denies this.

Charges were filed in September 2021.

Kim pleaded guilty to a charge under the Crimes Act of wilfully attempting to obstruct the course of justice.

Clarke and the other staff member pleaded guilty to offences of failing to comply with a statutory notice, in breach of the Commerce Act.

Both the District Court and the High Court denied permanent name suppression for Kim and Clarke.

The Commission’s investigation into potential anti-competitive conduct in the supply of televisions concluded with the Commission issuing a compliance letter to LG and a warning to Panasonic.