By Kim Yoo-chul
Two South Korean mid-tier conglomerates ― LSIS and Hyosung ― are involved in a 700 billion won ($600 million) legal feud after police issued an arrest warrant to a former Hyosung executive who moved to LSIS.
On Monday, LSIS said it will sue Hyosung which insisted the executive stole key confidential data in favor of LSIS. Hyosung claimed the case is an apparent industrial espionage and also a technology leaking.
``It doesn’t make any sense. Police are still investigating the case. We will sue Hyosung. This is totally groundless that LSIS is using Hyosung’s key technologies. The former Hyosung executive voluntarily moved to LSIS,’’ said LSIS spokesman Kim Bong-kyu in a statement.
Kim said the company led by the Chief Executive Koo Ja-kyun will fully cooperate with the police for the investigation.
The Hyosung executive was suspected of recording key management data such as Hyosung’s business plans about high-voltage direct current (HVDC) electric power transmission system and controllers that had been stored on his PC. The executive quit Hyosung in June 2010 and later joined to LSIS.
Hyosung is competing with LSIS in the race for the HVDC market. The market is increasing helped by the soaring global power demand and the rising appetites for renewable energy systems. LSIS also identified the HVDC business as one of its next earnings generators.
In a separate statement, Hyosung said; ``LSIS’s high-ranked executives were also involved in the espionage. This is intolerable. Hyosung heavily invested in the HVDC business and our HDVC technologies were receiving good responses.’’ Hyosung insisted that the leakage has caused it to suffer from at least 700 billion won.
``LSIS is collaborating with the Korea Electric Power Co. (KEPCO) for HVDC-related technologies. It’s groundless that Hyosung is the dominant player in HVDC technologies,’’ said Kim of LSIS, adding it’s true that the former Hyosung executive is now working for LSIS.
The executive was the former chief technology officer for Hyosung. It wasn’t immediately unknown why the executive quit from Hyosung. Hyosung officials declined to comment.