 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korea’s antitrust regulator has launched a formal investigation into LG Chem over allegations that it misused proprietary technology belonging to a subcontractor.
According to industry sources on Sunday, the Korea Fair Trade Commission dispatched investigators to LG Chem to secure relevant documents and evidence as part of the probe.
The regulator is reportedly examining whether LG Chem improperly obtained or used technical data provided by one of its suppliers.
Under South Korea’s Fair Transactions in Subcontracting Act, a principal contractor is prohibited from demanding technical data from subcontractors without a legitimate reason or from unfairly using or sharing such information with third parties.
The law is designed to prevent large companies from exploiting the proprietary technologies of smaller suppliers within subcontracting relationships.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
