South Korea’s LS Cable & System (LS C&S) has accused Taihan Electric Wire (TEW) of technology theft related to the design and layout of its new submarine cable manufacturing equipment.

Per multiple media reports, LS C&S claimed that TEW illicitly obtained the design and layout of LS Cable & System’s specialized equipment used in the production of submarine cables. Those are important as making and moving cables that can span tens of km and weigh thousands of tons reflect the company’s expertise that is a key part of its intellectual property.

The disagreement reached a new level on July 11, when police considered TEW as a suspect for violating the “Unfair Competition Prevention and Trade Secret Protection Act” and conducted a raid on its headquarters. A statement by LS C&S stated that the “theft of technology by Taihan Electric Wire is a clear criminal act,” and declared that if the allegations are proven true, the company will pursue all legal actions.

At issue was whether information about the floor plan that LS C&S had provided an architectural firm that later worked for TEW was improperly passed along. TEW recently held the official opening of a new submarine cable plant in the Godae district of the Asan National Industrial Complex in Dangjin-si, Chungcheongnam-do, and now plans to build a second such plant there that will be completed in 2026, and operational in 2027.

TEW issued a statement denying the allegations. “(Our) submarine cable factory layout is not a core technology, and there is absolutely no reason to secure a competitor’s layout and drawings for the purpose of technology theft.” It countered that LS S&C has a monopoly in South Korea, and that the country needs to have more competition to protect its market from foreign companies.