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Korens Cleared of Trade Secret Charges in Urgent Legal Victory

Korens Cleared of Trade Secret Charges in Urgent Legal Victory
Editorial
  • PublishedAugust 5, 2025

UPDATE: South Korean auto parts manufacturer Korens and its affiliate Korens EM have been officially cleared of all charges in a lengthy legal battle with larger rival SNT Motiv. This decisive ruling, issued by the Eastern Branch of the Busan District Prosecutors’ Office, confirms that there is no evidence of wrongdoing in the case concerning alleged trade secret theft and breach of trust.

The ruling, released in late July, follows a similar decision made in October 2022 by the Busan Metropolitan Police. This outcome effectively concludes a dispute that erupted in February 2022, when SNT Motiv accused Korens and Korens EM of unlawfully acquiring proprietary technologies and poaching key personnel.

Why This Matters NOW: The dismissal of these charges is significant for Korens, as the accusations have caused substantial reputational damage, resulting in lost business opportunities and halted development partnerships. Korens stated, “We suffered significant tangible and intangible damage during this period,” highlighting the real-world impact of the legal battle.

The conflict began when SNT Motiv publicly claimed that Korens had violated trade secrets. Korens countered that the employees involved had resigned from SNT Motiv between three and five years before the allegations were made, raising questions about the timing of the claims. A spokesperson for Korens stated, “The inconsistent timeline suggests SNT Motiv sought to use legal action and media pressure to block its smaller rivals’ entry into a new market.”

Furthermore, Korens criticized SNT Motiv for failing to provide substantial evidence to back its allegations, noting that investigative authorities had repeatedly requested further material to validate the claims. The lack of evidence extended the investigation by nearly a year, drawing attention to SNT Motiv’s history of pursuing similar legal actions against other companies, many of which were also dismissed without prosecution.

In a significant turn, former and current executives at SNT Motiv are now under investigation for allegedly filing false accusations, a serious offense under Korean law if proven. This adds another layer of urgency to the ongoing developments in this case.

Next Steps: Korens has emphasized the importance of protecting intellectual property but insists that such protections should not be weaponized by dominant firms to stifle competition. As the investigation into SNT Motiv unfolds, the implications for corporate conduct and competition in the auto parts sector could be profound.

As this story develops, the repercussions of this legal battle will continue to resonate within the industry, making it crucial for stakeholders to stay informed. The resolution of this case not only highlights the complexities of corporate competition but also underscores the need for transparency and accountability in legal disputes.

Stay tuned for more updates on this developing situation, as the impact on both Korens and SNT Motiv may shape future legal and business strategies in the sector.

Editorial
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