South Korea indicts nine people over Samsung trade secrets
South Korean prosecutors have indicted nine people on suspicion of selling Samsung technology to a Chinese company without authorisation.
Yesterday, November 29, Reuters reported that the CEO and eight employees of an unnamed Korean supplier have been charged with selling trade secrets protecting Samsung’s organic light-emitting diode (OLED) panels.
The Suwon District Prosecutors’ Office accused the group of forming a shell company that received information on the OLED panels from Samsung Display (a subsidiary of Samsung) and sold some of these documents in China for nearly $13.9 million.
According to Bloomberg, the South Korean supplier transferred 3D lamination technology and other equipment to the Chinese company between May and August, violating a non-disclosure agreement with Samsung Display.
Samsung uses the flexible OLED panels in its Galaxy mobile phones.
Reuters, which named the accused company as Toptec, reported that the business has denied any wrongdoing.
In a statement, Toptec said: “Our company has never provided Samsung Display’s industrial technology or business secrets to a Chinese client. Our company will fully cooperate with legal proceedings to find the truth in court.”
According to prosecutors, Samsung Display has invested W150 billion ($133.6 million) over six years to develop the leaked 3D lamination technology, which they called a “national core technology”.
Speaking to Reuters, Samsung Display said the indictment was “regrettable” and that the firm would increase efforts to protect technology.
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