AFP - Seven researchers at South Korea's debt-stricken Ssangyong Motor were charged Wednesday with leaking technology to its Chinese parent company, prosecutors said.

Prosecutors said the seven from Ssangyong's research institute would stand trial on charges of breaking a law on industrial secrets.

They are accused of leaking key technology on engines, transmission systems and a control system for a hybrid car which Ssangyong has developed with state money.

Prosecutors have been investigating the case for over three years after Ssangyong's union filed a complaint against China's SAIC Motor Corp in August 2006, accusing it of stealing core technology on hybrid cars.

SAIC lost management control when Ssangyong received protection from bankruptcy in February in exchange for massive layoffs and cost savings. But it still has a 51 percent stake.

The layoffs sparked a violent industrial dispute that led to strikers taking over a company plant for 77 days.

A Ssangyong spokesman told AFP that even though SAIC is the majority shareholder, some technology on hybrid cars is designated as state-registered and should not be shared without Seoul government approval.

The spokesman said SAIC allegedly also acquired technology without approval from Ssangyong's shareholders and board.

Ssangyong lurched into crisis amid slow auto sales, especially for its gas-guzzling sports utility vehicles. Both SAIC and creditors refused to bail it out.

Ssangyong has submitted a rescue package that among other measures would cut SAIC's holding to 11.2 percent through a five for one writedown of its stake. Other shareholders would face a three for one reduction.

South Korea is sensitive about alleged technology leaks to China. In 2007 five former and current employees of Kia Motors were accused of selling secrets on car assembly to China.

In 2008 prosecutors arrested a former engineer with South Korea's LG Electronics for stealing and leaking flat-screen TV technology to China.