"Samsung and LG paid too little in taxes on OLED components," Indian authorities launch probe; LG Electronics voluntarily pays a certain amount

[New Delhi, India—Pragya Awasthi, correspondent] Indian authorities have reportedly launched an investigation into whether Samsung Electronics and LG Electronics properly paid customs duties when importing display components for premium OLED TVs.
On the 28th, the DRI said it was investigating whether Samsung Electronics and LG Electronics had underreported the import duties applicable to open-cell OLED glass components used in OLED TV panels. Indian authorities maintain that a 15% duty should apply to the components, while Samsung Electronics and LG Electronics argue that the 5% rate applied to LCD and LED components should also cover OLED parts. The authorities contend that OLED, as an advanced form of LED technology, should receive the same tariff benefits.
The DRI recently visited Samsung Electronics' Indian headquarters in Gurgaon and questioned company officials, while LG Electronics reportedly submitted a response to the authorities' written inquiry. LG Electronics is said to have voluntarily paid an unspecified amount in preparation for the possibility of additional duties, but the exact figure has not been disclosed.
Samsung Electronics said it was reviewing the matter and cooperating with the authorities' investigation. It also stated that it would comply with the relevant laws. If the authorities ultimately determine that a duty shortfall occurred, they may impose additional taxes and a fine of up to 100% of the unpaid duties. The exact amount of duties believed to be unpaid has not been disclosed.
The investigation comes as Samsung Electronics and LG Electronics expand their premium TV businesses in India. LG Electronics maintains a large share of India's OLED TV market, while Samsung Electronics is expanding its presence by introducing a series of high-end OLED models. The two companies disagree with the Indian government's interpretation, arguing that OLED, as an advanced form of LED technology, should be subject to the same 5% duty rate as LCD and LED components.
The investigation targets the niche, high-value OLED segment of India's $4.7 billion (6.3788 trillion won) TV market. OLED TVs account for approximately 4% of total TV sales, and LG Electronics holds about 59% of India's OLED market by value. Samsung Electronics is also expanding its local high-end TV business with premium models.
The development comes as industry groups call on India's Ministry of Electronics and Information Technology to expand low-tariff measures for next-generation display production and tax benefits for manufacturing facilities. Industry representatives warn that excluding advanced display components from tariff benefits could raise production costs and hinder the development of advanced manufacturing under the Indian government's Make in India policy.
[email protected] Pragya Awasthi, correspondent Reporter