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Now, let’s delve into the recent allegations against Taihan Cable. After a three-year investigation, the police have concluded that Taihan Cable has indeed leaked the design of LS Cable’s submarine cable plant. The police have confirmed that the factory layout was leaked and found similarities in the structure of the equipment.
Taihan Cable has been under investigation for three years over allegations of leaking LS Cable’s subsea cable technology. LS Cable is the leading company in the domestic cable industry. The police have concluded that trade secrets were unfairly acquired. The main issue in this case was whether the core factory layout for subsea cable production had been leaked. During the investigation, the police determined that even key equipment, such as the turntable (a facility for winding, storing, and withdrawing cables), showed a high degree of similarity.
The Industrial Technology Security Investigation Unit of the Gyeonggi Nambu Provincial Police Agency referred a total of 13 individuals—including four executives and employees from Taihan Cable, seven associates from Gaon Architects & Engineers, and two employees from the equipment manufacturer SFA—along with the respective corporations, for violation of the Unfair Competition Prevention Act on May 28.
Taihan Cable has been suspected of leaking the internal facility layout and design layout of LS Cable’s Donghae Plant 3 during the construction of its Dangjin Subsea Cable Plant 1. LS Cable maintains that the design layout of a subsea cable factory constitutes unique know-how. This is because subtle differences in the distance, angle, and tension control between facilities can determine product yield. The building’s design also changes depending on how the equipment is installed, including the height of the structure.
Some argue that the facility layout is simply the result of process order or efficient workflow. Taihan Cable also maintains that the facility arrangement does not constitute any particular know-how. In other words, for something to be recognized as a trade secret, it must meet criteria such as providing a competitive economic advantage and being unknown to the public (non-public information).
LS Cable developed the world’s fourth ultra-high voltage subsea cable in 2007 and completed Korea’s first dedicated subsea cable factory in 2009. LS Cable commissioned Gaon Architects & Engineers to design and construct Donghae Plants 1 through 3.
