To lower the delivery price… ‘Kiturami’ handed over to subcontracted technology

by times news cr

“32 cases of partner sensor‌ technology leaked”
Fair Trade Commission fined KRW 950 million… accusation
Chinese company develops sensors⁢ and ⁢delivers them

Panoramic view of Kiturami Boiler Factory‍ in Asan, South Chungcheong Province. News 1

Kiturami, a boiler manufacturer,⁤ was ⁣fined close to 1 billion won for ​leaking ​its partner company’s technology to domestic and foreign ‌companies. It was revealed that the technology was even transferred to a Chinese ‍company in⁣ order ‌to receive boiler parts at a ⁢lower price.

On the 18th, the Fair ⁤Trade Commission⁣ announced that it ‌had imposed a ​fine of⁣ 954 million won on‍ Kiturami for violating the Subcontracting Act and reported it to the prosecution. Kiturami Holdings, the holding company of Kiturami Group, was‌ also ​reported to the⁤ prosecution. They are⁤ suspected of passing on technical data on parts from two partner companies ⁤to another ​company.

According to the Fair Trade Commission, Kiturami was found to​ have handed over⁢ 32 pieces of technical data from a partner⁢ company that supplied sensors to a Chinese competitor over a nine-month period from July 2020 to March of the ​following year. In order to receive components that detect heating water and exhaust gas temperatures at a lower⁢ price, the existing supplier’s technology was leaked to competitors.

⁢ The ‌Fair Trade Commission explains that the leaked data included not⁢ only the structure and characteristics of the sensor parts, but also ‌specifications, product drawings,​ and⁤ types of detailed ‍parts. The Chinese company that received the data succeeded in developing three types of sensors, and one type of sensor was actually delivered to Kiturami starting in 2021. It was found that Kiturami provided two cases of technical data from its partner companies to other domestic competitors in May 2022 in order to lower the unit price of electric motors⁣ used in air conditioner fans. This competitor company succeeded ⁣in developing an ⁣electric motor‍ using the data, but it did not lead to actual production. According ⁤to an internal document obtained by the Fair ‌Trade Commission, it was revealed that Kiturami ‌leaked technical data, saying it was dualizing its product suppliers to reduce costs ​or‍ respond to price increases.

The ‍Fair Trade Commission also discovered that Kiturami requested 46 pieces of technical ‌data from‍ two partner companies from 2012 to 2022 and failed to issue a ‘technical data request letter’ that stated the‌ purpose. Kim Hong-geun, head of‍ the Technology Misuse Investigation Division of the Fair‌ Trade Commission, said, “It was ⁢judged⁢ to be a ⁤very serious violation related to⁣ technology misappropriation, so we ⁤imposed a fine close to⁤ 1 billion won,⁢ which is the upper⁣ limit of fixed fines at the time of violation.” He added, “Technology that will continue to fundamentally undermine ⁣the market competitiveness of suppliers.” “We plan to intensively monitor misappropriation ​activities,” he said.

Sejong = Reporter ​Kim Do-hyung [email protected]

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​What measures can companies take to protect their sensitive technological data from misuse?

Interview between Time.news Editor and Kim Hong-geun, Head ‌of the Technology Misuse⁤ Investigation Division of the Fair Trade ‌Commission


Time.news Editor: Welcome, Kim Hong-geun, and thank you for joining⁣ us today to discuss the recent case involving ⁣Kiturami and its technology leak. It’s quite ⁢a significant issue​ in the realm of fair trade. Could you start ​by explaining what Kiturami did that warranted such a hefty ⁢fine?

Kim​ Hong-geun: Thank you for having me. ⁤The case revolves around ⁢Kiturami,⁤ a boiler⁣ manufacturer, ⁤leaking⁣ technical data from its partner companies to domestic and foreign competitors, specifically a Chinese company. Over a nine-month period,⁣ Kiturami handed over⁤ 32 pieces of critical technical information related to sensor technology, which allowed the competitor to develop similar products at ​a reduced cost.

Time.news Editor: That’s⁤ quite alarming. What kind of information exactly was leaked, and how did it impact ⁤the market?

Kim Hong-geun: The leaked data included vital specifications, product drawings, and detailed ⁢parts information concerning sensor components that detect the temperature of ⁣heating water and exhaust ​gases. As a direct ⁢consequence, the Chinese company was able to successfully‍ create ‌three different types of sensors, affecting market competition. ⁢Additionally, Kiturami ⁤attempted to use this leaked information to⁢ pressure its suppliers for lower prices, which could undermine innovation ⁣and fair pricing in the industry.

Time.news Editor: It⁣ sounds⁤ like ⁣a serious breach of trust with⁤ their partners. What prompted the ‌Fair Trade ⁢Commission to investigate Kiturami?

Kim Hong-geun: The investigation⁣ was initiated after we received internal reports suggesting potential​ misuse of technology. Our findings indicated that Kiturami not only provided sensitive information ⁢to foreign competitors but also engaged⁣ in similar actions with domestic companies. This behavior raised red flags about their business practices and⁣ adherence to the⁢ Subcontracting Act.

Time.news Editor: And how has Kiturami responded‌ to these accusations and the subsequent fine?

Kim Hong-geun: Kiturami has expressed regret over the ‍situation but has also maintained ​that their actions ‌were part ⁣of⁤ a strategy to ‍diversify suppliers in response to price increases. Nevertheless, the ‍regulations are clear, and their lack of communication with partner companies regarding ⁢technical data requests ⁢indicates a violation⁣ that we deemed necessary to address with the‍ imposed fine.

Time.news Editor: The fine ⁤is impressively ⁢close to 1 billion won. How does that penalty compare to other fines you’ve⁢ imposed ‍in similar cases?

Kim Hong-geun: This fine is indeed on the⁣ higher end of our scale. It reflects the seriousness of the violation, ​especially concerning technology​ misappropriation. We⁢ aim to ⁣establish a precedent that protects ⁢the integrity of industrial innovation and ensures fair ⁢competition in the market.

Time.news Editor: What steps do ‍you​ think​ can be taken to ​prevent such incidents in the future?

Kim Hong-geun: Strengthening transparency in business partnerships is crucial. Additionally, we need to⁢ promote awareness about the importance ​of protecting sensitive technological data. The implementation of stricter guidelines and regular audits could‍ also discourage companies from⁢ engaging ⁤in​ harmful ⁣practices ​that jeopardize their partners ​and‍ the wider market.

Time.news​ Editor: Thank you, Kim, for ⁢sharing your insights on this ‌important issue.⁢ It’s clear that⁤ the work of the Fair Trade ⁤Commission is vital in maintaining a fair⁢ and competitive industry.

Kim Hong-geun: Thank you ⁤for the opportunity to discuss this ⁣matter. It’s essential‌ for​ all stakeholders to understand the implications of such actions, and we will continue to ‌uphold fair practices in the industry.

Time.news Editor: This has ‍been ​an enlightening conversation. We hope to see positive changes in the industry as⁣ a result. ‌Thank you, Kim Hong-geun, for your time and expertise.

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