Korea Technology, Korea Technology Group Jo Hyun-beom and Jo Hyun-sik Criminal Complaint Filed

[Asia Economy Reporter Jang Hyowon] Korea Technology has filed a criminal complaint against Korea Technology Group President Cho Hyunbeom and CEO Cho Hyunsik, who continue to use the trade name despite the court's injunction prohibiting its use.

Korea Technology (CEO Shin Yonggu), a KOSDAQ-listed company, announced on the 20th that it has submitted a criminal complaint against Korea Technology Group (CEO Cho Hyunsik), a KOSPI-listed company and former holding company of Hankook Tire, and its representatives Cho Hyunbeom and Cho Hyunsik for violating the "Unfair Competition Prevention and Trade Secret Protection Act" and other charges.

Korea Technology had previously won both the injunction application for prohibition of trade name use decided in May and the objection lawsuit filed by Korea Technology Group on the 14th of this month, obtaining a court order to prohibit the use of the trade name.

The 60th Civil Division of the Seoul Central District Court, which handled the objection case, ruled that the necessity to maintain the injunction prohibiting the use of the trade name was recognized due to ▲ the demonstration of an "unfair purpose" to cause damage to others ▲ fulfillment of the requirements of the "Unfair Competition Prevention Act" ▲ similarity of the trade names causing possible confusion or misunderstanding ▲ recognition of the prior goodwill of the existing Korea Technology's business mark.

The court stated, "Since the manufacturing and sales of automotive electronic components significantly overlap, there is a current possibility of consumer confusion or misunderstanding, making it necessary to prohibit and prevent the violation of trade name use in the manufacturing and sales of automotive parts."

However, Korea Technology Group still continues to use the trade name. In response, Korea Technology submitted an "indirect enforcement application" to the court in May, requesting an order to pay a certain amount per day of violation, and is currently awaiting the court's decision.

Korea Technology stated that the negative issues such as the embezzlement and breach of trust trials involving brothers Cho Hyunbeom and Cho Hyunsik, conflicts with subcontractors, and sibling management disputes have been reported in the media, causing damage to its external image and stock price.

A Korea Technology official said, "We hope this case will set a good precedent to prevent large corporations from infringing on the trade name rights of small and medium-sized enterprises."

Korea Technology was established in 1997 as Vision Telecom, listed on the KOSDAQ market in 2001, and has been using the trade name since March 2012.

Currently, in addition to the automotive electronics business, it is engaged in automotive-related solution businesses such as smart parking lot radars and sensors. Since 2020, it has also entered the 5G smartphone and wearable distribution sectors. It recorded sales of approximately 150 billion KRW in the first half of this year.

Korea Technology Group began using the trade name in May 2019 as part of establishing a third-generation management system.

Korea Technology Group is the number one tire company in Korea, with affiliates including Hankook Tire & Technology (formerly Hankook Tire), Hankook AtlasBX (formerly AtlasBX), Hankook Networks (formerly M Frontier), and Hankook Car & Life (formerly HK Automotive).