A Korean company's 'exceptionally serious' failure to comply with a disclosure order in a licensing dispute could cost it £62 million plus interests and costs, the High Court in London has ruled. 

Making an 'unless' order in UK Hydrographic Office v Samyung Enc Co, Andrew Twigger KC, sitting as a High Court judge, said that Busan-based Samyung had committed 'multiple breaches of orders' threatening the prospect of a fair trial in litigation brought by the UK maritime charts agency. The order will require Samyung to pay the UK Hydrographics Agency (UKHO) a total of £91 million unless it complies with disclosure obligations by 13 February.

The dispute arose over three licences signed by Samyung for access to the UKHO's vector database of features that make up electronic maritime charts. Each licence was granted for use by a single vessel. In breach of these terms, Samyung decrypted the data and converted it into proprietary charts sold on devices worldwide. 

In 2022, a judge granted summary judgment to UKHO for breach of contract, striking out Samyung's defence and ordering an inquiry into the quantum of damages. Samyung was ordered to disclose data including the number of devices sold with its proprietary charts ahead of a trial listed for June this year. 

A case managment and costs conference last month heard that Samyung, which is currently undergoing 'rehabilitation proceedings' under Korean bankruptcy law, had failed to comply.

UKHO in the meantime applied for orders for judgment to be made of its full claim of £61,716,516.09 plus interest and costs and for permission to serve documents by alternative means if Samyung ceases to be legally represented in England and Wales. Samyung did not appear and was not represented at last month's applications hearing, though solicitors from its previous legal team, commercial firm Hill Dickinson, attended as observers. 

Granting the orders, Twigger described Samyung's breaches as 'exceptionally serious'. He criticised Hill Dickenson for guidance it had given the company in 2024 in which it advised that ceasing to participate in the proceedings would 'minimise Samyung's on-going costs' but would be 'risky'. 

Despite the latest court judgment, UKHO, a self-supporting a trading fund of the Ministry of Defence, faces several hurdles before receiving compensation. The judgment notes that a previous Insolvency and Companies Court judgment found that UKHO's claim 'dwarfed' Samyung's assets.