Former LG New Zealand Executives Plead Guilty Over Deleted Messages

Three former employees of LG New Zealand, including the company’s former Country Manager Dowan Kim, have admitted to criminal charges after key evidence was destroyed during a regulatory investigation into potential anti-competitive behavior. The investigation, conducted by New Zealand’s Commerce Commission, was focused on possible resale price maintenance in the television market.

According to a statement from the Commission, the charges were filed under the Crimes Act after it was discovered that Mr. Kim had directed LG New Zealand staff to delete potentially incriminating messages. This directive followed inquiries from the Commission regarding missing communications in LG’s response to a statutory notice issued under the Commerce Act in 2020.

Per a statement from the Commission, the direction to delete the messages came after LG New Zealand received a letter questioning why certain instant messages—such as those exchanged over WhatsApp—had been excluded from earlier submissions. The Commission stated that Mr. Kim had passed along the deletion instruction following a phone call with a senior manager based offshore. LG has denied that the directive originated from its global leadership.

As a result, Nicholas Clarke, a former Key Account Manager, and another staff member—whose identity remains protected by permanent name suppression—deleted customer-related WhatsApp messages. Both individuals pleaded guilty to breaching statutory obligations by failing to comply with the Commission’s compulsory notice.

Despite the seriousness of the conduct, all three individuals were discharged without conviction after the Commission reviewed their individual circumstances. This decision follows rulings from both the District Court and High Court, which rejected requests for permanent name suppression, allowing the case to be reported publicly for the first time.

In a statement, Commission Chair Dr. John Small emphasized the importance of compliance during regulatory investigations. “We take the use of our statutory powers seriously and we expect parties under investigation to comply with statutory notices,” Dr. Small said. “This case demonstrates that we will take action against parties who attempt to obstruct our investigations.”

The broader investigation into television suppliers concluded with the Commission issuing a compliance letter to LG and a warning to Panasonic. No further criminal charges are expected as a result of the inquiry.

The conduct at the center of the case dates back to 2020, when the Commission sought documents that included electronic communications between relevant parties. The omission of instant messaging apps triggered closer scrutiny and ultimately revealed the deletion of relevant material.

Source: ITWire