By Park Hyong-ki, Kim Rahn
Staff Reporters
Two executives of STX Heavy Industries were arrested Friday on charges of stealing key technology data from their former employer Doosan Heavy Industries & Construction.
The two former Doosan executives _ only identified as Ku and Kim _ are the incumbent president of STX's industrial plant department and the executive director of its development department, respectively, prosecutors said.
It is the first time that tech theft has taken place between big domestic companies and is expected to trigger turmoil in the industry. The industrial espionage case, if proven true, could wreak havoc on STX. Its share prices already took a severe beating Friday.
According to the Seoul Central District Prosecutors' Office, the two stole Doosan's core desalination and other key technical data when they quit their former employer and were hired by STX in April.
Ku allegedly took about 900 documents from Doosan by copying them onto USB ports. Prosecutors said the two carried out the thefts for some time while they were employed at Doosan. Besides Ku and Kim, prosecutors are questioning about 20 former executives of Doosan employed by STX in its electric power and desalination businesses.
As a latecomer to such fields, the company scouted dozens of high-ranking executives from Doosan this summer. Kim is said to have obtained confidential documents even after moving to STX by instructing one of his former subordinates to act as a spy.
The key data include blue prints to building electric power generation and desalination plants, which are Doosan's forte especially on overseas markets. It is the world's biggest developer of desalination plants with a global market share of about 46 percent.
The company expressed concern saying that the value of the technological know-how leaked by the two to STX could be at least 1.7 trillion won. ``But considering the years of work we've put into developing those technologies, it could be worth a lot more,'' said a Doosan official.
The violation of the Industrial Espionage Law committed by STX is expected to make a dent in its electric power and desalination businesses going forward, analysts say. However, STX denied violating the law, and said: ``The incident will not have any effect on our future business.''
The STX Group _ ranging from shipbuilding to shipping _ were created from a series of mergers and acquisitions that began with the takeover of Ssangyong Heavy Industries in 2001.
Shares of STX listed-companies sharply plunged across the board following the news Friday. STX Corp. shares dropped 20,000 won, or 14.76 percent, to close at 115,500 won; STX Shipbuilding closed down 9,400 won, or 11.97 percent, at 69,100 won; and STX Pan Ocean fell 310 won, or 7.46 percent, to 3,840 won. STX Engine was the only firm that survived the scandal with shares closing up 400 won, or 0.44 percent, at 89,900 won.