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Now, let’s delve into the recent developments at LS Cable & System’s submarine cables at the company’s East Sea facility.
In a significant development, the Gyeonggi Nambu Provincial Police Agency has concluded that Taihan Cable & Solution improperly obtained trade secrets related to submarine cable plant technology from its rival, LS Cable & System. This has escalated the ongoing legal battle between South Korea’s top two cable makers.
The police agency has referred 13 individuals and three corporations to prosecutors on charges of violating the Unfair Competition Prevention and Trade Secret Protection Act. Among those referred include four executives and employees from Taihan Cable, seven officials from the architecture firm Gawoon Comprehensive Architects, and two officials from an equipment company.
The police allege that Taihan Cable obtained confidential factory design information from LS Cable while constructing a submarine cable plant in Dangjin, South Chungcheong Province, between 2022 and 2023. Investigators believe that Gawoon leaked internal LS Cable materials to Taihan Cable, despite having signed confidentiality agreements with LS Cable.
The crux of the case is whether submarine cable plant designs qualify as trade secrets. Submarine cable plants require highly specialized layouts and equipment to manufacture, transport, and store the ultra-heavy cables, which are produced in continuous sections stretching tens to hundreds of kilometers.
LS Cable argues that such factory designs, which embody years of accumulated engineering know-how, should be treated as core trade-secret assets. The company developed ultra-high-voltage submarine cables in 2007, becoming the world’s fourth company to do so, and built Korea’s first dedicated submarine cable plant in 2009.
Gawoon had exclusively handled the design of LS Cable’s submarine cable plants from 2008 to 2023 before later signing a contract with Taihan Cable, the industry’s No. 2 player. Taihan Cable has long faced suspicions that it selected Gawoon partly to gain access to LS Cable’s accumulated submarine cable expertise.
The police launched the investigation in 2023 and concluded the case nearly three years later.
