November 22, 2024

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[THE INVESTOR] One of the main display manufacturing equipment suppliers of Samsung Display is being investigated by the prosecution here for illegally selling the tech giant’s OLED display technologies to Chinese firms.

The Suwon District Prosecutors’ Office said on Nov. 29 that has it indicted 11 executives and employees of Gumi-headquartered Toptec and its paper company based in China for leaking details of the 3D lamination manufacturing equipment, which allows an OLED display to be wrapped around the sides, to Samsung’s Chinese rivals, including presumably BOE. 

The two companies allegedly made 15.5 billion won (US$13.80 million) profits from the scheme.

Among the indicted, three of them, including Toptec President Bang In-bok, have been arrested while eight others will be investigated without detention.

The prosecutors’ office insisted that the leakage had caused financial damage, worth 6.5 trillion won in revenue and 1 trillion won in operating profit, to the affiliate of tech giant Samsung Electronics over the past three years.

The alleged leakage of the display technology, which is considered one of the nation’s key industrial assets, hit the Gumi-based equipment firm hard with its stock price nose-diving for two days in a row.

The shares dropped 20.17 percent to 9,380 won on Nov. 29 and hit an annual low of 7,480 won during intraday trading on Nov. 30.

The company denied the allegations in an official statement.

“We have been working with Samsung Display for the past 26 years and exported its pressing tech for curved displays to China in March this year after notifying the firm,” said Toptec CEO Lee Jae-won.

“The company will cooperate with the investigations to find out the truth.”

By Kim Young-won (wone0102@heraldcorp.com)