Leaking Trade Secrets with Subcontractors... Former STX Subsidiary Executives Prosecuted

"Attempt to Seize $500 Million Overseas Business Using Leaked Data"

The prosecution has indicted a former executive of STX Marine Service on charges of leaking key technologies and operational information related to the Iraq power plant project overseas.

According to STX Marine Service on the 13th, the Criminal Division 1 of the Busan District Prosecutors' Office indicted former employee A of STX Marine Service on the 9th for violating the Unfair Competition Prevention Act and breach of trust. STX Marine Service is a ship management company based in Busan under the general trading company STX.

A is accused of colluding with an Iraqi subcontractor while working at STX Marine Service to establish a separate company in Korea and leaking core technology files of STX Marine Service's power generation project overseas from late 2020 to early 2021. It is explained that this was an attempt to seize overseas projects worth 500 million dollars (approximately 685.8 billion KRW).

The Iraq diesel power generation project conducted by STX Marine Service generates an annual purchasing effect of 70 billion KRW and earns foreign currency worth about 80 million dollars (approximately 110 billion KRW) through about 100 domestic partner companies.

A representative of STX Marine Service explained, "We believe that A conspired with the Iraqi subcontractor to seize the company's large-scale overseas project, causing the cancellation of a private contract with the Iraqi government, and participated in the public bidding of the project using the leaked trade secret materials."

Meanwhile, besides leaking trade secrets, STX Marine Service filed a complaint with the Busan Metropolitan Police Agency in May 2022 against suspect A for breach of trust, including providing unfair benefits to the Iraqi subcontractor by deceiving management during employment and damage to power plant engines due to the supply of low-quality lubricants, and the investigation is ongoing.

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