LS Cable & System's (C&S) factory in Donghae, Gangwon Province / Courtesy of LS C&S

LS Cable & System (C&S), the leading cable manufacturer in Korea, defeated runner-up Taihan Cable & Solution (C&S) once again in a lawsuit involving the latter's alleged infringement of the former's patent on a bus duct joint kit.

Bus ducts are used to distribute electricity across large-scale installations. A bus duct joint kit is a connector that joins two bus duct systems together.

On Thursday, the Intellectual Property High Court upheld the Seoul Central District Court's ruling in 2022, which was in favor of LS C&S. The ruling came six years after LS C&S filed the lawsuit, alleging an employee of its subcontractor leaked its technology after he joined Taihan C&S in 2011.

Annulling the lower court's order for Taihan C&S to pay 490 million won ($337,105) to LS C&S, the appellate court increased the size of compensation to 1.5 billion won. Taihan C&S was also ordered to scrap all products related to this case.

"The latest ruling was an important decision to recognize our technologies and rights," an LS C&S official said. "To protect our core technologies developed through our employees' decades of efforts, we will continue sternly counteracting any attempt to steal our technologies."

Taihan C&S claimed that patents on the technology already exist in the United States and Japan.

"After reviewing the ruling, we will decide whether or not to appeal the decision," a Taihan C&S official said. "As we have used a different type of joint kit since several years ago, the latest ruling will not affect our bus duct business.

The two companies are also in conflict over allegations that Taihan C&S stole LS C&S' technologies to produce high-voltage submarine cables.

Last year, the police searched the Taihan C&S factory in Dangjin, South Chungcheong Province, and its headquarters in Anyang, Gyeonggi Province, due to the allegations.

LS C&S suspects that Taihan C&S stole the floor plan and layout of its submarine cable manufacturing factory in collusion with Gaun Architects & Engineers in Seoul, which designed the plant.

However, Taihan C&S emphasized its existing capabilities in manufacturing submarine cable equipment.

Amid ongoing legal battles, it was revealed that Hoban Group, the parent company of Taihan C&S, had purchased shares in LS Corp., the parent of LS C&S.

As Hoban's stake in LS Corp. is less than 3 percent, it remains uncertain when the construction-to-media conglomerate bought the shares. If Hoban's stake exceeds 3 percent, it will be able to secure rights to access the account book of LS Corp. and to convene an extraordinary general meeting of its shareholders.

Although Hoban cited the cable industry's growth potential as the reason for its investment, its acquisition of LS Corp. shares has been interpreted as an attempt to help Taihan C&S gain the upper hand over LS C&S.

Investors bet on LS Corp. with the expectation of a proxy battle, making its stock price close at 121,100 won on Thursday, up 18.96 percent from the previous session.