[Alpha Biz= Kim Jisun] Seoul – The Supreme Court of Korea has upheld a lower court ruling imposing a fine on Everlight Electronics Co., a Taiwanese LED manufacturer, for stealing industrial technology from Seoul Semiconductor. The decision marks the court’s first recognition that South Korea holds criminal jurisdiction over foreign corporations if key elements of the offense occurred domestically.
On September 7, legal sources confirmed that the Supreme Court’s Second Division (Presiding Justice Eom Sang-pil) dismissed Everlight’s appeal, finalizing a sentence of KRW 60 million (USD 44,000) in fines for violating the Act on Prevention and Protection of Industrial Technology Leakage.
The case began when three former employees of Seoul Semiconductor joined Everlight and illegally transferred proprietary LED technologies during the transition. Prosecutors indicted both the individuals and Everlight under the “dual liability” provision of the law, which allows corporations to be held criminally responsible for their employees’ actions.
The key legal issue was whether South Korean criminal jurisdiction could extend to a foreign corporation. The Supreme Court ruled that it could, affirming: “The acts of accessing, photographing, and unlawfully transferring trade secrets occurred within the Republic of Korea. Even if some activities took place abroad, it is reasonable to conclude that the defendant company committed a crime within Korea.”
This ruling sets a significant precedent for the prosecution of cross-border intellectual property theft involving foreign firms.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
