South Korea Sues Eleven for Selling Samsung OLED Technology to China
South Korea charged nine people and two companies of illegally selling Samsung’s bendable screen technology to a Chinese rival. The chief executive officer of a Samsung supplier and eight of his employees received a sum of 15.5 billion won ($13.8 million) after conspiring with two representatives of the Chinese company to transfer classified OLED technology, according to a statement from prosecutors in Suwon. The names of the companies and individuals weren’t disclosed. According to prosecutors, The CEO even set up a fake company headed by his sister-in-law and even built the equipment at another factory in an attempt to cover up the plot.
Intellectual property theft still a major concern
South Korea is pouring billions into becoming self-sustaining in areas such as memory chips and displays, two fields where Samsung is the world leader. Curved-edge OLED screens have become a signature feature of Samsung's flagships. Incidents like these are a major setback for the country, as it loses the little competitive edge it has over its neighbour. The U.S. is also concerned about what it considers a state-backed campaign of technology theft by China. Earlier this year a former Apple engineer was arrested in the U.S. on charges of stealing driverless car secrets. At this point, it is too early to determine if the Chinese government is directly involved with the alleged thefts. We should know more once the South Korean authorities finish their investigation.
News Source: Bloomberg
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