April 26, 2024

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[THE INVESTOR] LG Chem has dropped its lawsuit against British bank Barclays seeking up to 24 billion won (US$21.08 million) in damages, according to media reports on April 21.

Korea’s leading chemicals firm sued Barclays in May 2016 claiming that it was not notified after wiring money to a fraudulent account. The funds -- payments for raw material to Saudi Aramco Products Trading -- were transferred after it received an email in March saying the bank account had changed. It turned out to be a “spear phishing” scam. 

LG Chem filed for damages based on regulations requiring banks to check with companies if the account holder does not match the name of the party that received the money.

Both parties went through three trials since August 2016, and the suit was finally dropped on Feb. 9 after they reached a settlement. The details were not disclosed.

By Song Seung-hyun (ssh@heraldcorp.com)