South Korea’s Suwon District Prosecutors’ Office has concluded that Samsung Display 150 billion 3D lamination technology was sold by the CEO and 8 employees of Toptec Co Ltd for $13.85 million to China.
In a development that goes to corroborate much of the narrative coming out of the United States and which underscores one of the basic reasons of its ongoing trade war with China, South Korean prosecutors have indicted nine people on suspicion of violating the intellectual property rights of Samsung Electronics Co Ltd’s flexible display technology.
South Korea’s Suwon District Prosecutors’ Office has charged the CEO and 8 employees of Toptec Co Ltd for selling information about Samsung’s organic light-emitting diode (OLED) panels.
Prosecutors have accused them of forming a separate shell company that received information on the use of equipment and drawings of panels obtained from Samsung subsidiary Samsung Display, as well as selling some of the documents in China for $13.85 million (15.5 billion won), said the prosecutors office.
Toptec, which produces automated equipment to make mobile phone display panels, denied any wrongdoing.
“Our company has never provided Samsung Display’s industrial technology or business secrets to a Chinese client. Our company will fully cooperate with legal proceedings to find the truth in court,” said Toptec in a statement.
With the news reaching the marker, Toptec’s shares dropped by 20%.
A spokesman for Samsung Display stated the indictment was “regrettable” and that it would ramp up efforts to protect its intellectual property.
According to prosecutors, Samsung Display had invested 150 billion won over six years to develop the technology of 3D lamination, which was “a national core technology”.
Incidentally, Samsung dominates the market for small and mid-sized OLED displays and is a supplier of Apple Inc.