Police have launched a full-scale investigation following allegations of technology leakage between LS Cable & System and Daehan Cable, known as the "two major powers" in the domestic cable industry.
According to a report by Asia Economy on the 13th, the Industrial Technology Security Investigation Unit of the Gyeonggi Southern Provincial Police Agency has booked an architectural firm, referred to as A Architectural Office, on charges including violation of the Unfair Competition Prevention Act and is currently investigating.
The firm was responsible for the architectural design of LS Cable & System's high-voltage submarine cable (HVDC) factory from 2008 to 2022, but later participated in the construction of Daehan Cable's submarine cable Plant 1, a competitor of LS Cable & System. This plant was built in the Godeok District of Asan National Industrial Complex, Dangjin City, Chungnam Province, and began operations on the 3rd of this month. Police suspect that the architectural firm leaked submarine cable-related technologies secured during the design of LS Cable & System's factory while designing Daehan Cable's plant. It is reported that the police obtained related information in May, conducted a preliminary investigation, and recently started a formal investigation. A search and seizure operation was also conducted on the architectural firm and others.
Submarine cables are cables laid under the sea to transmit communication and electricity. HVDC refers to these cables operating at high voltage. The higher the voltage, the greater the amount of power that can be transmitted. Submarine cables have recently attracted attention as a new power supply source for offshore wind power. They serve as a key device to supply clean energy obtained through offshore wind and tidal power to the land. In this regard, the United States is emerging as a land of opportunity. According to MarketandMarkets, a global market research firm, the North American high-voltage cable market is expected to grow at an average annual rate of 5.7% until 2028.
Korean companies such as LS Cable & System and Daehan Cable are fiercely competing with global overseas companies. This incident is analyzed as a representative case that occurred as companies became more sensitive to technology leakage amid intensified competition. An industry insider explained, "When submarine cables are made long, they can be up to 80 km in length, and the entire process of coiling, storing, and transporting them to land is a single technology." Another insider said, "Depending on the results of the police investigation, guidelines to determine whether submarine cable technology leakage occurred are expected to be presented."
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