The announcement comes more than a month after LG appliances Chief Jo Seong-jin was indicted by Seoul prosecutors on a charge of deliberately damaging Samsung washing machines at a retail store in Germany.
The statement said that the agreement included a bitter months-long conflict over a set of damaged washing machines in September 2014.
The statement did not however say what penalty prosecutors would seek against Jo.
The two companies have attracted public mockery as they bickered over issues such as how many washers were damaged by Jo and other employees.
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When LG published surveillance video footage to YouTube in an attempt to prove Jo’s innocence, Samsung said the video was heavily edited in the executive’s favour.
The case adds to a history of clashes between the firms, including an argument over refrigerator capacity and which of the two has the bigger air-conditioning market share.
“Both sides have agreed to avoid legal action and solve any future conflicts or disputes through dialogue and mutual agreement,” the companies said.
The agreement extends to Samsung Electronics subsidiary Samsung Display and to LG Display Co Ltd. (Reuters/NAN)