Former KT&G researcher sues KRW 2.8 trillion for compensation for invention of electronic cigarette technology

The market size of cigarette-type electronic cigarettes, which are commonly found on the market, is expected to reach 2.5 trillion won next year.

However, a former researcher at KT&G, who claims to have first developed this electronic cigarette, filed a lawsuit worth 2.8 trillion won against the company, demanding compensation for the invention.

Reporter Seungseop Lee covered the story.

◀ Report ▶

Researcher Kwak Dae-geun joined the Korea Ginseng and Herbal Medicine Research Institute, which was absorbed and integrated into KT&G, in 1991.

For two years since 2005, Researcher Kwak developed an internally heated cigarette-type electronic cigarette, including a device, stick, and heating element, and applied for a patent.

The patent also included a groundbreaking technology at the time that reduced hazardous substance emissions by 1/10 compared to regular cigarettes.

However, at the time, KT&G could not guarantee commercial viability, so it postponed follow-up research and product development, and only released an electronic cigarette based on the patent in 2017, 10 years later.

Meanwhile, Mr. Kwak, who left the company due to restructuring, claims that the company did not pay him a penny in compensation even though he made a huge profit from the technology he invented.

[곽대근/KT&G 전직 연구원]
″If I had not developed the technology, KT&G would not be able to enter the cigarette-type electronic cigarette market.″

Ultimately, Mr. Kwak filed a lawsuit against KT&G, requesting 2.8 trillion won in compensation for employee inventions, taking into account the company’s profits earned during the 20-year patent holding period.

[강명구/법률 대리인]
″(KT&G) calculated the disadvantages arising from not filing overseas applications and the sales resulting from competitors entering Korea and infringing on patents.″

The 2.8 trillion won lawsuit requested by the plaintiff is estimated to be the largest individual lawsuit in domestic judicial history.

In response, KT&G countered that it had paid technical advisory fees to Kwak for a year starting in 2021, and that Kwak’s patents were only used for early products and were not applied to recent products.

However, Mr. Kwak’s side countered, saying, “Compensation for employee inventions and technical advisory contracts are different, and his patents are also being used in current products,” predicting a fierce legal battle.

This is Seungseop Lee from MBC News.

Video coverage: Jang Woo-chang (Daejeon)