South Korea’s leading cable manufacturers, LS Cable & System and Taihan Cable & Solution, are embroiled in a significant legal dispute after police concluded that Taihan Cable & Solution improperly acquired crucial **trade secrets** related to **submarine cable plant technology** from its competitor. This development intensifies the ongoing battle between the nation’s top two **cable makers**.
The Gyeonggi Nambu Provincial Police Agency announced on Thursday that it has referred 13 individuals and three corporations to prosecutors. These charges stem from alleged violations of the **Unfair Competition Prevention and Trade Secret Protection Act**, marking a critical step in the investigation into **industrial espionage** within the highly competitive **submarine cable industry**.
Among those referred are four executives and employees from Taihan Cable & Solution, seven officials from Gawoon Comprehensive Architects – the architecture firm involved, and two officials from an equipment company. This broad referral highlights the intricate network allegedly involved in the **trade secret breach**.
Police investigations allege that Taihan Cable & Solution unlawfully obtained confidential **factory design information** belonging to LS Cable & System. This alleged acquisition occurred during the construction of Taihan Cable’s own **submarine cable plant** in Dangjin, South Chungcheong Province, a project undertaken between 2022 and 2023.
Investigators suspect that Gawoon Comprehensive Architects played a pivotal role, allegedly leaking internal LS Cable & System materials to Taihan Cable & Solution. This action reportedly transpired despite existing confidentiality agreements Gawoon had signed with LS Cable & System, directly impacting **proprietary submarine cable technology**.
At the heart of this complex legal confrontation is the crucial question of whether **submarine cable plant designs** are legally recognized as **trade secrets**. The outcome of this determination could have significant implications for **intellectual property protection** in the industry.
Indeed, **state-of-the-art submarine cable plants** necessitate exceptionally specialized layouts and equipment. These unique facilities are essential for the manufacturing, efficient transport, and secure storage of ultra-heavy **submarine cables**, which are typically produced in continuous sections extending for tens to hundreds of kilometers. This specialization underscores the value of their designs.
LS Cable & System has consistently argued that these specific **factory designs** represent years of meticulously accumulated **engineering know-how** and proprietary development. Therefore, the company maintains that they should be classified and protected as core **trade-secret assets** within the **global cable manufacturing sector**.
Highlighting its pioneering role, LS Cable & System successfully developed **ultra-high-voltage submarine cables** in 2007, making it only the fourth company globally to achieve this feat. Furthermore, the company established South Korea’s first dedicated **submarine cable manufacturing plant** in 2009, cementing its leadership in **advanced cable technology**.
Notably, Gawoon Comprehensive Architects held an exclusive contract for the design of LS Cable & System’s **submarine cable plants** from 2008 to 2023. Following this period, Gawoon subsequently entered into a contract with Taihan Cable & Solution, the industry’s second-largest player, raising questions about potential conflicts of interest and the transfer of **proprietary design knowledge**.
For some time, Taihan Cable & Solution has been under scrutiny, with suspicions circulating that its decision to engage Gawoon was partly motivated by a desire to access LS Cable & System’s extensive and accumulated **submarine cable expertise** and advanced **manufacturing methodologies**.
The Gyeonggi Nambu Provincial Police Agency initiated this thorough investigation in 2023, concluding the extensive case nearly three years later, leading to the current referrals to prosecutors concerning the **alleged trade secret theft**.
