2) Critical Notes
Article 18 of the Subcontract Act prohibits undue management interference. The Guideline
for Fair Subcontract Transaction also describes interference in selecting sub-vendors and
request and receipt of any technical information as examples of undue management
interference
On the other hand, regarding ‘the circuit diagram’ in the specification sheet, the Supreme
Court made following decision in its Decision No. 2007Do9477 delivered on February 29,
2008. “Circuit diagram is a plan showing the arrangement, connection and size of
components, and electrical figures, by using certified symbol. In designing the diagram, the
most important part is selection and arrangement of elements. In order to complete the
specific function of the finished product, function tests to set the detailed size are undertaken.
Therefore, even if abstract technology of the circuit diagram is publicly known, the
independent economic value of the diagram completed through such process cannot be denied.”
7 Accordingly, the Court ruled that the circuit diagram shall be regarded as ‘trade
secrets’ under the Unfair Competition Prevention and Trade Secrets Protection Act. Given
this fact, the plaintiff’s request of the specification sheet is regarded as management
interference. The plaintiff’s internal text describes ‘the dualized specification order’, showing
the possibility that such information can be abused in a way to unduly discount component
price by delivering it to other companies. Since the plaintiff had developed such a practice in
the past 8, the illegality of management interference can be acknowledged.