By Jane Han
Staff Reporter

A former employee of GM Daewoo, the South Korean unit of General Motors, killed himself after prosecutors accused him and two others of leaking the auto maker's key technology to a Russian competitor, officials said Thursday.

The remaining two suspects, identified only by their surnames Hwang and Jeong, were arrested last week on charges of handing over core information on GM Daewoo's popular "Lacetti" sedan before getting jobs at the local branch of Russian auto firm TagAZ, according to the prosecution.

The Seoul Nambu District Prosecutors Office said 43-year-old Hwang was immediately hired by TagAZ to develop new models after he quit GM Daewoo in 2006. Two years later, he allegedly recruited former colleague, the 43-year-old Jeong, to TagAZ.

But before Jeong moved to the new job, he is believed to have copied over 6,000 files from his personal computer containing crucial technology details on engine and parts designs to build the Lacetti, investigators said.

The prosecution suspects that the leaks helped TagAZintroduce its latest "C-100" model sedan at a motor show held in Russia in April.

"Hwang and Jeong are denying the charges pressed against them, but their subordinates have testified that they ordered them to use the obtained files," said an official of the prosecutors' office.

If convicted, the suspects could face up to 10 years in prison, in accordance with South Korean laws protecting business secrets.

Prosecutors said they have questioned two to three TagAZ staff to investigate how much of GM Daewoo's technology was applied to develop the C-100.

Investigators are also looking into whether TagAZ Korea masterminded the plot, considering a large number of former GM Daewoo employees were recruited by the Russian auto maker.

GM Daewoo said Thursday that it will seek legal action against TagAZ Korea based on the investigation results.

The Lacetti, which was first introduced in 2002, is no longer sold in South Korea after its upgraded version Lacetti Premier was developed last year. But the older model, known as the Chevrolet Lacetti, is still being sold in Eastern Europe and India.

jhan@koreatimes.co.kr