DaeHan Cable Refutes LS Cable Technology Theft Allegation... "Factory Built with Independent Technology"

"LS Cable & System Does Not Steal or Use Submarine Cable Technology"
"Excessive Restraint by Monopoly Company"

LS Cable & System: "Daehan Cable Technology Theft Is a Criminal Act"

Daehan Cable fully denied LS Cable's allegations of underwater cable technology theft, stating, "The layout of the underwater cable factory is not a core technology, and Daehan Cable has neither stolen nor utilized LS Cable's trade secrets."

On the 15th, Daehan Cable stated in an official position, "We built the factory with our own technology and have not stolen any technology."

This was a rebuttal following LS Cable's warning on the same day that "if the technology theft is proven true," it would take all legal measures, in response to the recent search and seizure of Daehan Cable's headquarters and factories by the Southern Gyeonggi Police Agency's Industrial Technology Security Investigation Unit on suspicion of violating the 'Unfair Competition Prevention and Trade Secret Protection Act.'

Exterior view of Daehan Electric Wire Dangjin Plant.
[Photo by Daehan Electric Wire]

Daehan Cable is suspected of having stolen underwater cable manufacturing equipment drawings and layouts through Gaun Architectural Office, which previously designed LS Cable's underwater cable factory.

Daehan Cable countered, saying, "Cable products, which have a linear structure, proceed from the center (conductor) to the outside (insulator and sheath, etc.), and the equipment is arranged considering this sequence. The underwater cable equipment is the same," adding, "The factory layout is determined considering production capacity, the shape and size of the factory site, and the location of the pier, so the factory equipment layout cannot be considered core technology."

They further explained, "The factory layout is not a critical technical matter to the extent that it can be purchased from overseas equipment suppliers for a certain fee," and "there is absolutely no reason to secure a competitor's layout and drawings for the purpose of technology theft."

Additionally, they stated, "Daehan Cable built the factory with its own technology through decades of accumulated cable manufacturing expertise and research on underwater cables," and "After dozens of internal reviews and studies considering various conditions, the final layout was decided, and based on this, the first phase of Factory 1 was constructed."

They added, "Factory 2 is also reviewing layouts for various candidate sites," and "After selecting the optimal site through this process, engineering services will be received from M Company, the largest cable equipment manufacturer in Europe."

Gaun Architecture was selected fairly through a competitive bidding process. Daehan Cable stated, "The claim that we contacted Gaun Architecture first and repeatedly requested designs is not true, and we do not know the contract amount with the competitor," adding, "Gaun Architecture is a firm that designs the space of the factory building, and the underwater cable factory equipment was manufactured and installed by specialized companies."

In particular, they emphasized, "There are limited companies in Korea capable of producing underwater cable equipment," and "Daehan Cable has only fairly provided bidding opportunities to companies with experience supplying cable equipment, and has never demanded the same equipment manufacturing and layout as LS Cable claims."

Daehan Cable argued that this technology theft controversy is an "excessive check by a monopoly company." A Daehan Cable official said, "If LS Cable, which holds a monopoly position domestically, obstructs Daehan Cable's market entry with unverified claims, it will not only weaken the national competitiveness in the underwater cable and offshore wind power industries but also fail to protect our cable market from overseas companies such as those from China."

They added, "We will sincerely cooperate with the police investigation, actively clarify any false information, and prove that there are no charges," emphasizing, "If it is proven that there are no charges, we will take all possible civil and criminal legal actions."

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