Ferrotec to Quit Key S. Korean Operations

Economy

Seoul, April 17 (Jiji Press)--Japan's Ferrotec Holdings Corp. <6890> has decided to quit key South Korean operations, citing concerns about court judgments in South Korea.

Ferrotec Advanced Materials Korea Corp., a South Korean subsidiary, will terminate its operations to develop, make and sell silicon carbide products used in semiconductor-making equipment, the parent company said Tuesday.

In February, three former employees of the subsidiary were indicted by South Korean prosecutors on charges of violating laws related to trade secret protection and unfair competition prevention.

"There are concerns that judicial independence may not be fully secured, in view of the recent judicial decisions in South Korea on Japanese companies," Ferrotec Holdings said.

"We've judged that it is most suitable to minimize potential risk at this stage," the company continued.

[Copyright The Jiji Press, Ltd.]

Jiji Press