South Korean electronics brands face Indian probe over display import taxes

South Korean firms LG Electronics and Samsung are facing an official probe in India concerning allegedly underpaid import taxes on display components used in high-end televisions. Five sources confirmed the inquiry, which focuses on organic light-emitting diode technology. Indian tax officials argue that the companies improperly availed a lower five percent import tax rate meant for older liquid-crystal and light-emitting diode panels. The Directorate of Revenue Intelligence contends that organic light-emitting diode parts should instead attract a fifteen percent duty. Representatives for the companies are privately contesting this position, maintaining that the advanced display panels are essentially an updated form of light-emitting diode technology and should qualify for the same rates. Revenue officers recently visited Samsung's office in Gurugram near New Delhi for questioning, while authorities sent written inquiries to LG, which has already provided replies alongside an unspecified voluntary monetary deposit. Market data indicates India's television market reached a value of 4.7 billion dollars last year, with organic light-emitting diode models capturing roughly four percent of that share. Samsung currently contests a separate 520 million dollar tax demand in the country related to networking equipment imports. Meanwhile, industry groups including the Consumer Electronics and Appliances Manufacturers Association and MAIT petitioned the information technology ministry in August to extend the five percent tax break to advanced display parts, arguing that current rules raise input costs and disadvantage modern manufacturing under domestic policies.