Reuters, citing five sources, reports that India is investigating LG Electronics and Samsung over allegations that they paid lower import duties on high-end television display components. This scrutiny places the high-end entertainment equipment market—an area where these two South Korean giants have invested heavily—under the spotlight. Protracted investigations into import duties and taxes have long been a source of frustration for foreign investors in India, affecting companies such as Samsung and Volkswagen; however, Indian officials maintain that they are simply enforcing the law.
The latest investigation concerns the import of display components used to manufacture OLED (organic light-emitting diode) panels. Known for their superior picture quality, OLED panels are produced in India by LG Electronics and Samsung—both of which view the country as a key growth market.
However, according to market research firm Omdia, the market for high-priced OLED TVs remains a niche segment globally, with sales totaling just 6.5 million units last year. Data from Counterpoint Research indicates that India’s television market was valued at $4.7 billion last year, with OLED TVs accounting for a market share of nearly 4%.