{"id":2202406,"date":"2023-10-04T08:00:41","date_gmt":"2023-10-03T23:00:41","guid":{"rendered":"https:\/\/koreapro.org\/?p=2202406"},"modified":"2023-10-03T15:26:43","modified_gmt":"2023-10-03T06:26:43","slug":"tech-secrets-at-stake-seoul-court-backs-samsung-in-non-compete-case","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/10\/tech-secrets-at-stake-seoul-court-backs-samsung-in-non-compete-case\/","title":{"rendered":"Tech secrets at stake: Seoul court backs Samsung in non-compete case"},"content":{"rendered":"

The Seoul Central District Court has <\/span>upheld<\/span><\/a> 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.<\/span><\/p>\n

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.<\/span><\/p>\n

Why It Matters<\/b><\/p>\n

The Seoul Central District Court\u2019s decision to uphold a two-year non-compete clause against a former Samsung Display employee underscores South Korea\u2019s heightened vigilance against potential technology leaks, particularly to overseas competitors. This ruling comes at a time when the nation, home to tech giants like Samsung Electronics and SK Hynix, grapples with a surge in industrial espionage cases. South Korea has been intensifying its stance against technology theft, with the National Police Agency <\/span>arresting 77 individuals<\/span><\/a> linked to 35 cases of industrial espionage in just a three-month span earlier in June. The stakes are high, especially when considering that semiconductors alone accounted for <\/span>nearly 19% of South Korea\u2019s total exports in 2022<\/span><\/a>.<\/span><\/p>\n

The court\u2019s decision also mirrors broader global concerns about the transfer of critical technological knowledge, especially to China. For instance, <\/span>a former Samsung Electronics executive<\/span><\/a> was recently charged with allegedly providing trade secrets worth about $220 million (300 billion won) to establish a rival chip factory in China. This incident, coupled with the Seoul Central District Court\u2019s latest ruling, highlights the challenges multinational corporations face in safeguarding their intellectual property. As China continues its aggressive push to acquire technological know-how, countries and corporations alike are fortifying their defenses. The Seoul court\u2019s ruling will set a precedent for future non-compete cases.<\/span><\/p>\n

Business & Economy<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a>Technology & Cyber<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

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) […]<\/p>\n","protected":false},"author":10407,"featured_media":2202407,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24,28,29],"class_list":["post-2202406","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy","tag-inter-korean-foreign-relations","tag-technology-cyber"],"yoast_head":"\nTech secrets at stake: Seoul court backs Samsung in non-compete case - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2023\/10\/tech-secrets-at-stake-seoul-court-backs-samsung-in-non-compete-case\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tech secrets at stake: Seoul court backs Samsung in non-compete case - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"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. 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