The Seoul Central District Court has upheld a two-year non-compete clause enforced by Samsung Display on a former employee who later joined a Chinese tech firm. The employee, who had worked with Samsung Display for over 13 years and worked on the development of the excimer laser annealing (ELA) process for organic light-emitting diode (OLED) production, resigned in Jan. 2022. Following his departure, he received a compensation of approximately $64,500 (87.97 million won) for agreeing to the non-compete terms. However, by April, he had secured a position with a Chinese competitor, prompting Samsung Display to take legal action.

In its decision, the court cited the specialized nature of the OLED field, the high barriers to entry, and the need to protect proprietary technology as reasons for upholding the non-compete clause. The ruling also emphasized the broader public interest served by ensuring a fair competitive landscape in the fiercely contested global display sector. To reinforce the injunction, the court set a penalty of about (5 million won) for each day of noncompliance.