Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Chinese battery maker probed for alleged technology theft from Samsung SDI, SK On
The sign of Svolt hangs on the wall of its research institute inside Korea University's Korea TechnoComplex building in Seoul. Screenshot from YouTube
By Park Jae-hyuk
A Chinese battery firm and its car manufacturing parent are under investigation in Korea for allegedly stealing technologies from Samsung SDI and SK On, according to the police and industry officials, Wednesday.
The National Security Investigation Bureau, part of the National Police Agency, referred the case to prosecutors on Jan. 10. They are urging the indictment of Svolt Energy Technology Korea, Svolt's Chinese headquarters, and their parent company, Great Wall Motor, based on alleged violations of the Act on Prevention of Divulgence and Protection of Industrial Technology.
Svolt has the fourth-largest share of the Chinese electric vehicle battery market, while Great Wall Motor is the largest seller of SUVs in China.
Five former and incumbent employees of the two Korean battery makers were referred to prosecutors for allegedly providing designs of the Korean companies’ battery cells to Svolt.
The Korean employees were reportedly enticed by Svolt with attractive offers, including high salaries and substantial bonuses, during meetings at events organized by battery industry associations. The Chinese firm allegedly attracted them through its Korean office, which enables them to remain in their country of origin.
Svolt set up an R&D center in Seongnam, Gyeonggi Province, in February 2020 and relocated the facility in 2021 to Korea TechnoComplex within Korea University in Seoul. It has also recruited battery experts here who are fluent in Chinese.
When the company unveiled its cobalt-free battery a few months after entering Korea, some industry officials raised suspicions that the development might have been influenced by technologies obtained from Korean engineers who had previously worked for Korean battery firms.
The investigators are reportedly looking into whether Great Wall Motor ordered Svolt to steal technologies from Korean companies.
In 2022, Svolt paid 5 million yuan ($702,000) to its larger Chinese rival, CATL. This payment was made following a lawsuit by CATL, alleging that nine former employees who had transitioned to two Svolt subsidiaries had violated non-compete agreements.
Svolt's Korean office was unavailable for comment regarding the ongoing investigation, and the suspects are reported to be denying the allegations. Both Samsung SDI and SK On declined to comment on the issue, citing the ongoing nature of the investigation.
Last August, a former executive at LG Energy Solution was indicted for allegedly taking money after leaking the company’s trade secrets to an advisory broker.
In response to the rising cases of industrial espionage, the Supreme Court’s Sentencing Commission held a plenary meeting last year to discuss the implementation of stricter penalties for leaking the nation’s core technologies. The commission plans to finalize the revision of its sentencing guidelines in March.