Published : Thu, 10 May 2007 11:07
By : Agencies
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SEOUL (XFN-ASIA) - Five current and former employees of Kia Motors
have been arrested for allegedly selling automotive technology to
China, causing potential losses of billions of dollars to a key
industry, prosecutors said.
The prosecutors' office in Suwon city south of Seoul said the five
are accused of stealing key technical secrets regarding car
assembly.
Prosecutors described the case as the country's most serious
industrial espionage incident, that could cause damage of 'a few
billion dollars.'
Kia, the country's second largest car maker and an affiliate of
Hyundai Motor, said the industrial espionage may help China catch
up with South Korea in auto making.
'We are still assesing the damage, although we are treating very
seriously a case that may help China narrow the technology gap
quickly with South Korea,' Kia spokesman Lee In-Ho told Agence
France Presse.
Technologies allegedly sold to China were related to Kia's popular
sports utility vehicle, the Sorento, and a new model that will hit
the market in December, he said.
On nine occasions since last November, the accused allegedly
diverted a total of 57 secrets to an unidentified Chinese auto
company through a technology consulting company in South
Korea.
The consultant allegedly sold Kia's intellectual property to the
Chinese company for 230 mln won. It also tried to sell the
technologies to another Chinese automaker, prosecutors said.
( 1 usd = 925.10 won )
