Samsung reaches settlement over ‘exploding’ washing machines

The South Korean consumer goods titan has suffered several blows to its reputation in recent years. (File/AFP)
Updated 12 February 2019
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Samsung reaches settlement over ‘exploding’ washing machines

  • The faulty appliances were recalled in 2016 after reports some of the washers were “exploding”
  • In 2016 it was forced to issue a worldwide recall of its flagship Galaxy Note 7 smartphone over exploding batteries

SEOUL: Samsung Electronics has reached a settlement in a class-action lawsuit over 2.8 million “exploding” washing machines recalled in the US, the South Korean company said Tuesday.
The faulty appliances were recalled in 2016 after reports that the top “can unexpectedly detach from the washing machine chassis during use, posing a risk of injury from impact,” according to The US Consumer Product Safety Commission.
The lawsuit claimed some of the washers were “exploding.”
“Samsung has chosen to settle class-action lawsuits involving top-load washing machines that were subject to a voluntary recall,” Samsung said in a statement, adding the decision was reached to “avoid distraction and expense of litigation.”
The washing machines in question have long been off the market, Samsung said.
Those covered by the settlement may receive benefits ranging from a “rebate, refund or reimbursement of certain expenses, costs, and repairs,” according to the statement.
Samsung said at the time that the recall applied to models built between 2011 and 2016 for “reports highlighting the risk that the drums in these washers may lose balance, triggering excessive vibrations, resulting in the top separating from the washer.”
The South Korean consumer goods titan has suffered several blows to its reputation in recent years.
In 2016 it was forced to issue a worldwide recall of its flagship Galaxy Note 7 smartphone over exploding batteries, costing the firm billions of dollars.
The group’s heir, Lee Jae-yong, was soon after embroiled in a major corruption scandal that ousted South Korean president Park Geun-hye, and he spent nearly a year in jail for bribing her close confidante.
But in just a decade, Samsung has gained considerable ground in the US washing machine market with its share jumping from 1.8 percent in 2008 to 19.8 percent in 2017, according to market research firm TraQline.


Bank lending for ‘real economy’ key to boost China growth: central bank official

Updated 14 min 54 sec ago
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Bank lending for ‘real economy’ key to boost China growth: central bank official

  • ‘The central bank doesn’t wish to use administrative methods to require banks (to lend)’
  • Quantitative easing is neither necessary nor possible at the moment

SHANGHAI: China should encourage its banks to support smaller, private firms in the real economy, rather than forced lending or policies such as quantitative easing, a state newspaper quoted a central bank official as saying on Saturday.
“The central bank doesn’t wish to use administrative methods to require banks (to lend),” Sun Guofeng, head of the monetary policy department at the People’s Bank of China (PBOC), told the Financial News, a bank publication.
“It wants to establish positive encouragement mechanisms though monetary policy tools to encourage banks to actively increase their support for the real economy, especially toward smaller and privately-owned firms,” Sun said.
The comments come a month after Sun wrote a commentary in which he argued that problems with timely capital replenishment, bank liquidity gaps and poor rate “transmission” are three major constraints on banks’ supply of credit.
In the interview with the Financial News, Sun said monetary policy transmission had “noticeably improved,” showing that steps to enhance transmission mechanisms had been effective.
He said the central bank would increase the strength of innovation in monetary policy tools.
Perpetual bond issuance “is only one breakthrough” in reducing capital constraints on banks, Sun said, adding that “other methods” could be used in the future.
He said that quantitative easing was neither necessary nor possible at the moment, noting that under China’s financial system the significance of the central bank buying Chinese treasury bonds on the secondary market is limited, and that the PBOC is barred from buying the instruments on the primary market.
China’s banks made the most new loans on record in January following a series of moves to boost lending as authorities try to prevent a sharp slowdown in the world’s second-largest economy.