The conflict between LS Cable and Daehan Cable over alleged technology theft has intensified, reflecting a fierce competition for dominance in the domestic undersea cable market. As global investments in offshore wind and power networks grow, undersea cables have emerged as a key growth area for the wire and cable industry, heightening tensions between the leading LS Cable and the pursuing Daehan Cable.
On May 28, the Southern Gyeonggi Police Agency's Security Investigation Division referred 13 individuals, including an executive from Daehan Cable, and three corporations—Daehan Cable, Gawon Architectural Firm, and a construction company—to prosecutors on charges of violating laws related to unfair competition and trade secret protection.
This development is expected to further escalate the conflict between the two companies. According to industry sources, LS Cable has long been the dominant player in the undersea cable sector. High-voltage undersea cables require substantial investment in equipment and years of accumulated production and construction experience. This field demands not only product manufacturing but also expertise in cable design, insulation technology, operational management of production facilities, quality verification, and offshore installation experience, making it difficult for new entrants to gain a competitive edge quickly.
Recently, Daehan Cable has been expanding its investments, positioning undersea cables as a future growth driver. The company has established a production base for undersea cables in Dangjin, South Chungcheong Province, and is entering the global bidding competition, directly challenging LS Cable. Industry analysts suggest that the movement of personnel from LS Cable and the use of related technologies by Daehan Cable during its rapid market entry may have ignited the conflict.
To support its entry into the undersea cable market, Daehan Cable has continued significant investments. Following the establishment of its first undersea cable factory in the Godeabu area of Dangjin, the company is also pursuing additional investments aimed at producing high-voltage direct current (HVDC) undersea cables. Daehan Cable is working to secure specialized installation vessels and expand its international certifications, striving to broaden its foundation for winning global projects.
LS Cable has raised concerns that Daehan Cable's expansion into the undersea cable business may infringe upon its core technologies and know-how. The company argues that information related to factory design and production processes is not merely documentation but trade secrets accumulated over years of trial and error. Conversely, Daehan Cable contends that it has pursued its business through independent investment and technology development.
In response to the referral to prosecutors, LS Cable claimed it has suffered damages amounting to billions of won, while Daehan Cable reportedly denied the allegations, asserting that the contested information does not qualify as a trade secret.
Industry experts note that the fundamental reason for the ongoing conflict is the expanding market itself. Undersea cables are critical infrastructure connecting offshore wind farms to onshore power grids. Demand for power network expansion is increasing not only in Europe and the United States but also in Asia, making this a market that domestic cable manufacturers cannot afford to overlook. Securing a supply record can influence subsequent project bids, making technological leadership and trust crucial in the competition.
There are concerns that the legal battle between the two companies could prolong. Ongoing police investigations, prosecutor evaluations, civil damage claims, and disputes over trade secret violations may continue. A key issue will be determining the extent to which undersea cable technology can be classified as a trade secret and how to distinguish between accumulated experience and company-owned technology during personnel transitions.
If the conflict drags on, it could burden the entire domestic undersea cable industry. Global competitors, particularly European and Chinese firms, are vying for large projects. A prolonged legal dispute between domestic companies could raise questions about technological reliability and supply trustworthiness in bidding competitions.
An industry insider remarked, "Undersea cables are poised to become the most important growth market for the wire and cable industry, so the clash between leading and emerging companies is somewhat predictable. This issue extends beyond specific personnel or document leaks to encompass the struggle for dominance in the domestic undersea cable market and the stability of national power network projects."
* This article has been translated by AI.
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