Auto Officials Accused of Leaking Tech Secrets to China
Nine former and incumbent employees of Kia Motors have been indicted by prosecutors for leaking key car manufacturing technologies to China.
The Suwon Prosecutors' office said Thursday that the suspects allegedly sent assembly and welding technologies from Hyundai Motor and Kia Motors to a car maker in China's Anhui Province.
Five of them including an incumbent employee named Lee were arrested. Four former employees including a man named Kim were charged without detention. Five former employees including a man named Choi worked for Kia Motors and its affiliates for five to 20 years.
They are believed to have approached the current employees through an auto technology consulting firm, Company "A", that they set up in 2005. They then allegedly stole frame-building technologies and other managerial data.
The five are accused of receiving 57 pieces of confidential data by email from last November to April of this year. The material included assembly technology for the Kia Sorrento and a new model called "HM".
From September 10 last year to January 20, 2007, the consultants allegedly passed the information to Company "C" while traveling in and out of China. Company "C" has been publicly criticized for copying GM Daewoo's Matiz city car.
Prosecutors say their investigation shows that Company "A" received W230 million (US$1=W925) from Company C for "technological guidance," and that the thieves also tried to sell the information to another Chinese car maker identified as Company "J". The welding and assembly technologies that were stolen are key manufacturing secrets that affect the noise, vibration, safety, and durability of the automobile.
Hyundai and Kia Motors estimated the damage from the theft could add up to W4.7 trillion by 2010 in the Chinese market and W22.3 trillion in the global market.
Source: The Chosun Ilbo, 05/12/07
SURETY'S TAKE ...
Kia Needs to Rev Up Data Security...The ease with which employees shared corporate secrets with outsiders is alarming. In a highly competitive industry like the automotive industry, companies need to ensure that their corporate secrets are kept in confidence. To allow seemingly unrestricted access to crucial corporate intellectual property shows a clear lack of understanding of the importance of a comprehensive data security and management policy.
DeterrenceSurety’s AbsoluteProof® makes it easy for companies to detect data manipulation.
GovernanceThe sloppy data security practices of Kia expose the company and its senior managers to great risk by allowing unauthorized users access to valuable company secrets. In this case, Kia executives were not aware of misconduct until it was too late and had already cost the company millions. Using AbsoluteProof, Kia would be able to easily prove the time of creation and true ownership of corporate data.
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