Police investigating allegations of technology theft involving LS Cable have concluded that Daehan Electric improperly acquired trade secrets.
The Southern Gyeonggi Police Agency announced on May 28 that it has referred 13 individuals, including an executive from Daehan Electric and four employees, as well as seven officials from Gawon Architectural Firm and two from a construction company, to the Suwon District Prosecutors' Office on charges of violating laws related to unfair competition and trade secret protection.
The Daehan Electric employees are accused of unlawfully obtaining LS Cable's trade secrets during the design phase of a factory for undersea cables in Dangjin, South Chungcheong Province, between 2022 and 2023.
Police believe that Gawon Architectural Firm violated a confidentiality agreement with LS Cable by providing internal documents to Daehan Electric without authorization.
Daehan Electric has faced suspicion of selecting Gawon Architectural Firm as the design contractor to gain access to LS Cable's accumulated expertise in undersea cable technology, which is considered a trade secret.
Under relevant laws, trade secrets are defined as information that is not publicly known, has been kept confidential, and holds economic value.
The police began their investigation in 2023 after receiving a tip-off and have now concluded the case nearly three years later, referring the matter to prosecutors.
LS Cable stated that it has suffered damages amounting to hundreds of billions of won due to this incident, while Daehan Electric reportedly contends that the information in question does not qualify as a trade secret.
Other involved parties, including Gawon Architectural Firm, have also denied the allegations, asserting that the information does not constitute a trade secret.
Should the prosecutors and courts find Daehan Electric guilty, it is anticipated that astronomical civil lawsuits will follow.
In response to the police investigation, an LS Cable representative stated, "LS Cable plans to respond according to principles against acts of technology theft and infringement to protect the core technologies and industrial ecosystem accumulated through decades of effort, dedication, and significant investment by our employees."
* This article has been translated by AI.
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