STX Heavy Industries hit by espionage case

Top executives of STX Heavy Industries, a unit of STX Corp, have been indicted for allegedly stealing secrets from a rival company. While STX Shipbuilding is not directly involved nevertheless its share price fell by 7% yesterday following action by the Seoul central district prosecutor’s office. Six senior executives have been indicted for leaking confidential information from former employers Doosan Heavy Industries. The information was allegedly used to bid for a desalination plant in Saudi Arabia. Officials charged include Koo Sung-mo, 61, head of industrial plant division. According to a Doosan spokesman the “theft” is said to have resulted in financial damages of W1.7Trn ($1.8Bn). STX Shipbuilding shares, however, have rallied today. The industrial espionage case comes amidst the arrest of a former employee of Daewoo Shipbuilding for passing on technological secrets to Chinese yards. A Chinese national is also being held as investigations continue.