Samsung Biologics and Lotte Bio begin legal battle over 'personnel and trade secret leak'

Reporter Paul Lee / approved : 2023-08-28 06:50:45
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[Apha Biz=(Chicago) Reporter Paul Lee] The first trial of a criminal suit filed last year by Samsung BioLogics against a former employee who moved to Lotte BioLogics will be held at the Incheon District Court on the afternoon of the 28th.

The criminal suit draws attention in that it is a legal battle between Samsung BioLogics and Lotte BioLogics, Korea's leading conglomerates, over the leakage of manpower and infringement of trade secrets. In particular, it is evaluated as a place to check whether there have been actual legal violations.

Samsung BioLogics and Lotte BioLogics have been at odds since last year over whether to leak trade secrets through the transfer of workers. The starting point is when Lee Won-jik, the current CEO of Lotte BioLogics, who worked for Samsung BioLogics for 10 years, moved to Lotte Holdings in August 2021.

Lotte announced the establishment of Lotte BioLogics in June 2022 and began recruiting Samsung BioLogics' workforce in earnest. However, it has been revealed that trade secrets such as Samsung BioLogics' manufacturing and production and management systems have been leaked due to the shift in manpower.

In response, Samsung BioLogics filed an injunction with the Incheon District Court against three employees who moved to Lotte BioLogics in June last year. The Incheon District Court accepted the injunction, citing some details in July of the same year.

The trial, which will be held on the same day, was indicted after Samsung BioLogics filed a complaint against a former employee who moved to Lotte BioLogics separately after the injunction was cited. The charges are violation of the Unfair Competition Prevention and Trade Secrets Protection Act and professional malpractice.

The Incheon District Prosecutors' Office raided Lotte BioLogics' headquarters in October last year following Samsung BioLogics' criminal charges, and investigated the situation before and after the turnover and the leakage of documents equivalent to internal trade secrets.

According to the investigation, the Incheon District Prosecutors' Office indicted one of the four criminal charges. In the first hearing on the day, the prosecution's indictment details of the charges will be disclosed prior to the full-fledged interrogation and defense of the defendant.

 

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)

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