Prosecutors Indict Cuchen for Leaking Partner Company Technical Data

The Taegeukgi and the Prosecutor's Office flag hanging at the Seoul Central District Prosecutors' Office in Seocho-dong, Seoul
[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Kitchen appliance company 'Cuchen' has been prosecuted for handing over technical data of a partner company demanding price increases to a competitor in order to cut off transactions with that company.

The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jung-seop) announced on the 1st that it has indicted Cuchen Corporation and two employees, including A, the head of the Strategic Purchasing Team of the Manufacturing Division, for violating the "Act on the Fair Transactions in Subcontracting."

Cuchen is accused of providing technical data related to printed circuit board assemblies of subcontractor B to a competing company without authorization three times between March 2018 and January 2019. It was investigated that Cuchen committed the crime to change suppliers after B demanded a price increase. In fact, transactions between Cuchen and B completely ended in 2019 after the technical data leak.

Previously, the Fair Trade Commission, which investigated the case, imposed a fine of 922 million KRW on Cuchen and reported Cuchen Corporation and one deputy manager-level employee to the prosecution. During the investigation, the prosecution detected signs of involvement and instructions from higher-level employees and indicted A, the team leader-level employee, as well.

The prosecution emphasized, "Crimes involving the leakage of technical data significantly harm the subcontractors' willingness to innovate and worsen the business environment."

This content was produced with the assistance of AI translation services.