Police Charge 13 in Alleged Undersea Cable Technology Theft Case

LS Cable officials examine undersea cables at the Donghae site. [Provided by LS Cable]

Police investigating allegations of technology theft involving LS Cable have determined that Daehan Electric improperly acquired trade secrets.

The Southern Gyeonggi Police Agency announced on May 28 that they have referred 13 individuals, including an executive from Daehan Electric and four employees, along with seven representatives from Gaun Architectural Firm and two from an equipment 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 process for an undersea cable factory in Dangjin, South Chungcheong Province, between 2022 and 2023.

Police believe that Gaun Architectural Firm violated a confidentiality agreement with LS Cable by providing internal documents to Daehan Electric without authorization.

Daehan Electric has faced suspicions that it selected Gaun Architectural Firm as the design contractor to obtain LS Cable's accumulated expertise in undersea cable technology, which is considered a trade secret.

According to relevant laws, a trade secret is 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 and have concluded the case nearly three years later, referring the matter to prosecutors.

LS Cable stated that it has suffered losses amounting to hundreds of billions of won due to this incident, while Daehan Electric has reportedly countered that the information in question does not qualify as a trade secret.

Other involved parties, including Gaun Architectural Firm, have also denied the allegations, asserting that the information does not constitute a trade secret.

Meanwhile, if the prosecutors and courts recognize the charges against Daehan Electric, significant civil lawsuits are expected to follow.

In response to the police investigation, an LS Cable representative stated, "LS Cable plans to respond in accordance with principles to protect the core technologies and industrial ecosystem that have been accumulated through decades of effort, dedication, and substantial investment by our employees against acts of technology theft and infringement."

* This article has been translated by AI.