Jiangxi Infintech has so far delayed payment deadline by up to 5 times
The controversy over Infintech’s delayed payments to South Korean display equipment maker isn’t looking close to a resolution anytime soon.
The Chinese company had ordered equipment from companies back in 2018 to build a 6th-generation liquid crystal display (LCD) factory at Jiangxi, but the deadline of their contracts had been pushed back multiple times and they are yet to be reimbursed. The combined delayed payment is though to be over 100 billion won. The construction of the LCD factory in China has since been halted.
The Korea Display Industry Association (KDIA) had lodged a formal complaint to the Chinese ambassador of South Korea on the matter back in July.
Infintech, or Jiangxi Infintech Optoelectronics, had ordered equipment from Top Engineering, YEST, DMS, Vessel and other companies back in 2018. Their contracts were set to expire around October to November of 2018 but this has been pushed four to five times per company.
DMS, whose contract was set to expire on December 30, last week announced that it was canceling the contract with Infintech. It said Infintech couldn't perform the obligations of the contract. The deal was worth 6.1 billion won.
A DMS spokesperson said it was difficult to contact Infintech and there were no discussions of further adjustment on the deadline between the two. The contract has been made void, they said.
DMS didn’t actually make the equipment but bought the necessary materials and had expenses related to sales and management, the spokesperson said, and the company was considering filing a damages lawsuit.
Contracts of Top Engineering, Vessel and YEST is set to expire in May 2021. Top Engineering had singed two contracts with the Chinese company, each worth 3.1 billion won and 7.9 billion won. Vessel had signed a 10.5 billion won contract and YEST 7.7 billion won.
These companies, together with KDIA, was contacting to Chinese law firms, the Jiangxi province government and display association of China to investigate Infintech’s status. Infintech’s CEO and executives of 2018 had all quit the company and were not available for contact, these companies have found.
The Chinese construction company responsible for building the LCD factory has also filed a lawsuit against Infintech.
However, Infintech is yet to go bankrupt and the LCD factory project hasn’t actually stopped.