Court Orders Korea Technology Group to Pay Compensation to Korea Technology for Mutual Use of Name

[Asia Economy Reporter Jang Hyowon] Korea Technology has won the third round of mutual lawsuits against Korea Technology Group.

KOSDAQ-listed Korea Technology (CEO Shin Yonggu) announced on the 22nd that its indirect compulsory application submitted to the court on May 28 was accepted on the 20th, allowing it to receive compensation from Korea Technology Group (CEO Cho Hyunsik) for the use of the trade name.

The court recognized Korea Technology's indirect compulsory application requesting an order to pay a certain amount per day for violation of trade name use. An indirect compulsory application is a procedure in which the court is requested to order damages for the period if the debtor does not fulfill the obligation.

The 52nd Civil Division of the Seoul Central District Court stated in its decision on the 20th, "This indirect compulsory application based on the provisional injunction prohibiting the use of the trade name is justified," and ruled, "Korea Technology Group shall not use its trade name in the manufacturing and sales of automobile parts and the holding business controlling these, and if violated, shall pay damages per day of violation."

A representative of Korea Technology said, "Korea Technology Group has been using the trade name without permission, continuously ignoring the court's decision," and appealed, "Due to continuous negative issues such as the embezzlement and breach of trust trials of Cho Hyunbeom and Cho Hyunsik, conflicts with subcontractors, and sibling management disputes, our company with a similar trade name has suffered damage such as a decline in external image and stock price."

He added, "Despite losing all three lawsuits and being ordered to pay damages through criminal complaints and indirect compulsory measures, Korea Technology Group has not changed its attitude. We strongly urge them to immediately stop using the trade name in a manner befitting a large corporation."

Meanwhile, on the 21st, Korea Technology also filed a criminal complaint with the Seoul Central District Prosecutors' Office against Korea Technology Group and its top executives Cho Hyunbeom and Cho Hyunsik for violating the 'Unfair Competition Prevention Act (Act on the Prevention of Unfair Competition and Trade Secrets).'