Prosecutors Indict GS Affiliate Samyang International for 'Stealing CESCO Trade Secrets'

Seoul Central District Prosecutors' Office building Photo by Yonhap News

[Asia Economy Reporter Kim Hyung-min] An executive and the corporation of Samyang International, an affiliate of GS Group, have been indicted on charges of extracting internal documents from a competitor under the condition of guaranteed job transfer.

According to the legal community on the 7th, the Information Technology Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Seong-beom) indicted Samyang International executive Mr. A and former employee Mr. B of competitor Sesco on the 5th without detention for violating the Act on the Prevention of Unfair Competition and Protection of Trade Secrets (disclosure of trade secrets). The prosecution also applied charges of breach of trust, believing that Sesco suffered financial damage due to Mr. B's crime. Samyang International as a corporation was also indicted under the joint penalty regulation.

Mr. B worked as the head of Sesco's corporate sales team, responsible for overall sales and planning, before resigning in January last year. Before his resignation, he received an offer from Mr. A guaranteeing a job transfer to Samyang International. Under that condition, he was asked to hand over Sesco's internal documents and is accused of unlawfully providing Mr. A with materials containing trade secrets. Investigations revealed that among the leaked materials were many trade secret documents, including Sesco-managed customer master data and lists of canceled customers.

Sesco detected signs of Mr. B's trade secret leakage and filed a police complaint against Mr. B and others last year. It is reported that Mr. B ultimately did not transfer to Samyang International. Samyang International, an affiliate of GS Group, has been competing with Sesco in the domestic quarantine business since establishing the environment-specialized brand 'Huen Care' in 2015.