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India is investigating LG Electronics and Samsung over alleged underpayment of import duties

ICICIdirect Research 24 Sep 2026 DISCLAIMER

News: As per media reports, India is investigating LG Electronics and Samsung over alleged underpayment of import duties on OLED TV display parts. Authorities allege a 5% concessional tariff was claimed instead of the 15% duty that the Directorate of Revenue Intelligence believes applies to OLED parts. The companies maintain that OLED is an advanced form of LED and should receive the same tariff treatment. No amount of alleged duty shortfall has been disclosed, penalties could be up to 100% of the duty allegedly evaded. LG has submitted its response and made an unspecified voluntary deposit.

View: The outcome could have implications for LG’s OLED TV import costs and premium-TV margins, depending on the final duty determination. Television contributes ~25% of LG Electronics India’s revenue, while OLED open cells are estimated to account for ~50–65% of TV BOM. Assuming the full 10% incremental duty is applicable on the open-cell value and low OLED proportion in TV sales, the potential impact could be much less than 1% or negligible impact of LG India’s revenue at the upper end of the affected base. Besides, potential pass-through to consumers and the final customs valuation will also have role to play. LG has ~26% TV market share and ~59% OLED share by value in India, while the overall TV market was valued at ~$4.7bn, with OLEDs accounting for ~4%. Industry bodies are also seeking the 5% concessional duty for OLED parts, citing higher input and capital costs. Overall, expect negligible impact from this development and stay positive on LG electronics India esp with upcoming festive and premiumisation trend.

Impact: Neutral

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