‘Subcontractor Technical Data Leaked to Competitor’ HD Hanguk Joseon Haeyang Fined 200 Million Won

HD Korea Shipbuilding & Offshore, indicted for leaking technical data of subcontractors to competing subcontractors, was sentenced to a fine in the first trial.

Seoul Central District Court, Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

On the 26th, Judge Hyun Kyung-hoon of the Criminal Division 15 at the Seoul Central District Court sentenced HD Korea Shipbuilding & Offshore to a fine of 200 million KRW for violating the Subcontracting Act.

The court stated, "The defendant misappropriated technical data by providing it to a third party without issuing a written document detailing the compensation for the technical data from the subcontractor."

However, the court explained the sentencing reason as, "Considering that the technical negligence was not significant and that a separate surcharge was imposed."

HD Korea Shipbuilding & Offshore was brought to trial in April 2022 on charges of unfairly providing 12 approvals for ship lighting equipment production from subcontractor A to competing subcontractor B four times between April 2017 and April 2018.

Under the current Subcontracting Act, when a prime contractor requests technical data from a subcontractor, they must provide the subcontractor with a written document stating the purpose and legitimacy of the request.

The company is also charged with providing four ship-related production drawings from two subcontractors to competing companies on four occasions around the same period.

Additionally, from April to June 2017, it is accused of requesting 125 approvals for ship-related production drawings from 55 subcontractors without issuing the legally required written documents regarding the purpose and confidentiality.

The Fair Trade Commission issued a recurrence prevention order and imposed a fine of 246 million KRW in December 2020. The prosecution investigation began after the Ministry of SMEs and Startups requested a complaint to the Fair Trade Commission in November of the following year.

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