Korea Electric Power Corporation (KEPCO), the country's largest state-run corporation, took receipt of a product from a mid-sized company that a different company held the patent and trademark for, and then when the other company took issue with what was happening KEPCO demanded that it hand over the patent. It essentially tried to snatch another company's technology. You get a sense of how difficult it must be to run a mid-sized company when even state-run corporations are so high-handed towards them. KEPCO's internal guidelines about receiving goods are absurd. When purchasing materials employees are not supposed to include patented products, and when patented products need to be included the regulations stipulate that the standard be changed, with the patent holder's permission. That is like telling the subcontractor to neither develop nor use patented technology. That is typical avoidance of the right way to go about things. Given KEPCO's internal guidelines, there is reason to suspect that there are many more cases where suppliers' patents were rendered useless.
The reality is that it is not that difficult for monopolizing conglomerates to steal technology from smaller companies. The Fair Trade Commission (FTC) says it is going to crack down on unfair transactions, but there are clear limits to that. There are close to no mid-sized companies that could survive after threatening to break off a relationship with a conglomerate. Most endure the high-handed tactics and suffer silently.
We note again that there needs to be a change of thinking, so that the relationship between conglomerates and mid-sized companies becomes cooperative. Fortunately there are now conglomerates that recognize the need for coexistence with their suppliers, and the making of a cooperative mode is reason for hope. Putting that to practice will be critical. When conglomerates and mid-sized companies met at Cheong Wa Dae last month to discuss cooperation, KEPCO was introduced as an exemplary case for announcing plans about major support for technological development at mid-sized companies. If that was not all just a bunch of talk, then it should fix what it is doing wrong. It should revise the part of its internal guidelines that are a problem and its CEO should make it clear that he is going to lead the way in correcting KEPCO's wrongful practices.
The Hankyoreh, 11 June 2005.
[Translations by Seoul Selection (PMS)]
[Editorial] The Two Faces of KEPCO |
