Russia firm fined in S. Korea over car copying

Feb 23, 2011

A South Korean court Wednesday fined a Russian carmaker almost $9,000 after one of its employees was jailed for stealing technology secrets from the local unit of General Motors.

GM Korea -- formerly GM Daewoo -- filed a petition in 2009 alleging TagAZ Korea had used the technology it had designed to be used in its Lancetti car.

It claimed TagAZ was using the information to build its own C100 sedan.

Last year a former GM Korea engineer idenfied only as Hwang received a 30-month jail term after being found guilty of stealing computer files containing the key information.

TagAZ Korea recruited Hwang, 44, in 2006 as head of its research centre. Five other TagAZ Korea employees received suspended jail sentences for thei parts in the theft.

TagAZ Korea has denied its involvement in the case, but the court ruled that it had not fulfilled its obligation to prevent "illegal activities" by its staff.

And on Wednesday TagAZ was ordered to pay a fine of 10 million won ($8,896) by the Seoul District Court.

GM Korea last month dropped the name of former associate Daewoo. GM owns a 70.1 percent stake in GM Korea, the manufacturing base for smaller vehicles for the Detroit-based .

GM turned profitable in 2010 after posting net losses for the previous two years. But its share of the Korean market was just around eight percent last year.

Explore further: Zynga's new game: cut costs, jobs

Related Stories

SKorea and US forge deal to fight cyber attacks

May 04, 2009

South Korea and the United States have agreed to cooperate in fighting cyber attacks against their defence networks from countries including China and North Korea, officials said Monday.

Recommended for you

Zynga's new game: cut costs, jobs

43 minutes ago

Zynga said Wednesday it was cutting staff by 18 percent amid ongoing losses, as the social games pioneer seeks to reboot its strategy.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

geokstr
3 / 5 (2) Feb 23, 2011
Holy cr*p, Batman! 10 million won! Boy, that'll learn 'em. Bet they never try that again, after that monster beat-down.

I wonder if they have to come up with all that swag at once or can pay in installments.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.