A South Korean court has found two contractors who worked on Taiwan's sub programme guilty of leaking torpedo-launching system designs. The ruling called the case a "diplomatic burden" that could be placed on?Seoul.

According to the ruling, on Tuesday, the Masan Branch Changwon District Court sent to prison the chief executive officer of a South Korean contractor for two and a quarter years and sentenced two employees from another firm to one and a hal year in jail.

The court did not identify the defendants or the companies, but did name their attorneys, who declined comment.

The ruling stated that the defendants who were hired to build "torpedo-launching tube and storage" for Taiwan's sub project were accused of leaking highly confidential information about designs to Taiwan.

The court said that the case could become a "major burden" on South Korea's diplomatic relations.

The ruling stated that "This crime could pose a serious threat to South Korea’s security because strategic technology was export without the approval from the Defense Acquisition Program Administration. And the export partner is Taiwan which has an 'tense relationship' with its neighbours in East Asia."

DAPA is South Korea’s national arm-sales regulator.

South Korea is like many other countries in that it only has formal diplomatic relations with Beijing and not Taipei. China considers the island to be its territory. Taipei rejects this view.

The ruling stated that the defendants denied any wrongdoing, and argued the information they shared with Taiwan was not sensitive technology or business secrets requiring export licenses.

Taiwan's Defence Ministry referred all questions about the case to CSBC - the Taiwanese Shipbuilder who is leading the building of the subs. CSBC didn't immediately respond to requests for comments.

Taiwan is attempting to build eight subs but there have been delays. The prototype's first sea trial was held in June.

Taiwan's government made military modernisation its key policy platform. It has also repeatedly committed to spending more on defence, given the growing threat from China. This includes developing homegrown subs.

Taiwan will increase defence spending next year by a fifth, exceeding 3% of the gross domestic product. It is investing more in new equipment, to better compete with China and to convince the U.S. that it is serious about building its military.

Reports from 2023 stated that South Korean officials, citing the threat of Chinese economic retaliation as a reason, had accused a third Korean contractor, for his work on Taiwan's sub project, for violating trade law. The conviction of that contractor has been reversed. Reporting by Ju-min Park, Taipei; Additional reporting by Ben Blanchard; Editing by Ed Davies & Thomas Derpinghaus

(source: Reuters)