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Russian carmaker fined in GM Daewoo technology leak case

All Headlines 16:04 February 23, 2011

By Kim Eun-jung

SEOUL, Feb. 23 (Yonhap) -- A Seoul court Wednesday fined TagAZ, a Russian carmaker, 10 million won (US$8,896) for using key technology leaked from GM Daewoo Auto & Technology, a South Korean unit of General Motors Corp., to make its new compact sedan.

Prosecutors had indicted two former employees of GM Daewoo on charges of handing over thousands of computer files that contained engine, design and other information about a compact sedan "Lacetti" and also charged the Korean unit of TagAZ with using the stolen manufacturing knowhow when developing the "C100" sedan in 2009.

The two former employees of GM Daewoo were sentenced by a local court last year to a two-and-a-half years and a suspended jail term, respectively, while three others at TagAZ were given suspended jail terms for their involvement in the technology leak.

TagAZ Korea, however, denied its involvement in leaking the trade secret.

"The development of 'C100' was a key project that could decide the fate of the company. Given the positions and roles of employees embroiled in the technology leakage, the firm did not fulfill its obligation to prevent illegal activities," the Seoul Southern District Court said in a ruling.

GM Daewoo was created in 2002 after GM acquired Daewoo Motor Co., the automobile manufacturing unit of the collapsed Daewoo Group.


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