SEOUL, Jun. 11 (Korea Bizwire) – A former team leader at LG Display has received a final prison sentence for attempting to leak the company’s core technologies, including AMOLED display technology, to a Chinese competitor.
The Supreme Court’s Second Division upheld the original ruling of one year and six months in prison and a fine of 1 million won against the defendant, referred to as Mr. A, who was indicted for violating the Industrial Technology Protection Act and breach of trust. The Supreme Court stated that the original ruling did not exceed the boundaries of free evaluation of evidence or contain any legal misinterpretation.
Mr. A was charged with accessing and photographing a total of 68 items of national core technology data from LG Display between January 27 and February 3, 2021. He stored 1,065 photos on his personal mobile phone.
Previously, Mr. A had worked at LG Display for 20 years, overseeing the establishment and management of large OLED panel production lines. After working as a resident employee in China from 2012, he expressed his intention to resign in 2021 while working from home during self-quarantine due to the COVID-19 pandemic.
The company subsequently discovered through a security check that Mr. A had accessed the server and leaked data during his self-quarantine period, violating company security regulations. The leaked data possessed high technological and economic value in domestic and international markets, posing a significant threat to national security and the national economy if leaked overseas.
The prosecution’s investigation revealed that even before photographing the confidential information, Mr. A had actively attempted to join a competing Chinese company, referred to as Company Q, after his resignation.
In the first trial, the court acquitted Mr. A, citing a lack of evidence. However, the appellate court overturned the acquittal, sentencing Mr. A to one year and six months in prison and a fine of 1 million won. The appellate court determined that there were circumstances suggesting Mr. A attempted to conceal his actions, and also cited messages sent by Mr. A to Company Q employees, such as “I’ve been waiting for your contact. I have a lot of experience and information that could help with the process,” as evidence.
Under current laws, if an employee fails to return or discard trade secrets upon resignation with the intent of leaking them to a competitor or using them for personal gain, it constitutes a breach of trust.
The appellate court stated, “If such crimes are treated leniently, companies will lose motivation to invest significant time and resources into technology development,” adding, “It would allow foreign competitors to easily plunder the technological capabilities built by Korean companies under the pretext of talent recruitment.”
However, the court considered mitigating factors, such as the core technology not being actually leaked to competitors or third parties and the lack of evidence showing the photographed materials were actively used as a means for job seeking, in determining the sentence.
Kevin Lee (kevinlee@koreabizwire.com)