Seoul Semiconductor Technology Theft by Taiwan Everlight, Guilty in Appeal Trial as Well

Everride Fine
Three Former Executives Sentenced to Prison

Exterior view of Seoul Semiconductor headquarters in Ansan, Gyeonggi-do. (Photo by Seoul Semiconductor)

[Asia Economy Reporter Moon Chaeseok] Everlight, a Taiwanese LED (light-emitting diode) company accused of stealing technology from Seoul Semiconductor, was found guilty again in the appellate court.

According to Seoul Semiconductor on the 23rd, the Suwon District Court recently upheld the original ruling in the appeal trial against Everlight, which was charged with violating the Unfair Competition Prevention and Trade Secret Protection Act and the Act on the Prevention and Protection of Industrial Technology Leakage (Industrial Technology Protection Act). In the first trial in September 2020, the court recognized Everlight's technology theft charges and imposed the highest level fine of 50 million KRW. In the appellate trial, the fine increased by 10 million KRW to 60 million KRW.

Three former executives and employees of Seoul Semiconductor who leaked the technology to Everlight were also sentenced to imprisonment. According to Seoul Semiconductor, Everlight bribed three individuals, including Executive Director K and Director S, who worked at Seoul Semiconductor, to steal automotive LED technology and were prosecuted. Seoul Semiconductor explained, "Although Everlight appealed, the court ruled that Seoul Semiconductor's technology is not only a trade secret but also advanced technology under the National Industrial Technology Protection Act, additionally recognizing the charge of unfair acquisition of industrial technology leakage, resulting in a guilty verdict."

The court sentenced the former Seoul Semiconductor executives and employees to two years in prison with a probation period of two to three years.

Seoul Semiconductor is the number one LED specialist company in Korea and ranks third worldwide. It is evaluated to have established a semiconductor technology gap by securing 18,000 patents through investments exceeding 1 trillion KRW over 30 years. Lee Jung-hoon, CEO of Seoul Semiconductor, said, "Intellectual property is the foundation for South Korea to leap into an economic powerhouse and the only means for young entrepreneurs to survive, develop, and live better lives," adding, "Bad companies that repeatedly engage in illegal acts such as technology theft must be exposed."