What Is Japan Really Worried About Regarding "Samsung Under Attack" in China?

In-depth Report on Chinese Technology Theft
"In the Past, It Happened Between Han and Il," Observing Stance
Future Technology Dispute Expected to Expand

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Japanese economic daily Nihon Keizai Shimbun (Nikkei) has drawn attention with an in-depth report on the issue of China’s technology theft, highlighting the shadow China casts over Samsung Electronics, which is currently experiencing a leadership vacuum following the passing of Chairman Lee Kun-hee and the imprisonment of Vice Chairman Lee Jae-yong.

On the 8th, Nikkei published a feature article titled “The Giant Samsung, Korea Defending on the Frontline Against China’s Offensive - Samsung’s Internal Struggles,” stating that Samsung’s future direction has become uncertain due to the leadership void, with the background being China’s persistent technology theft.

According to data submitted by the National Intelligence Service of Korea to the National Assembly, a total of 123 cases of technology leaks were detected over five years from 2014 to 2019, of which 83 cases involved leaks to China. Most of the core technologies China attempted to steal are in sectors where Korean companies have strengths, such as semiconductors, displays, and shipbuilding. Although Samsung is making all-out efforts to prevent technology leaks, Nikkei reported that these efforts are insufficient.

The article also explained that China is scouting engineers from major Korean companies like Samsung and LG by offering large salaries. Citing an internal source from BOE, China’s largest panel manufacturer, the newspaper reported that about 120 Koreans are employed at BOE’s factories and research centers, including around 50 former Samsung employees. These Korean engineers who have moved to China reportedly enter the country via Hong Kong or Shanghai even during vacations to avoid detection by Korean authorities and companies, illustrating a cat-and-mouse technology race between Korea and China surrounding key engineers, the newspaper said.

Nikkei noted, “This kind of situation previously occurred between Korea and Japan,” adopting a watchful stance. It highlighted that Samsung’s core businesses such as semiconductor memory and displays were once dominated by Japanese electronics companies worldwide, and that under the command of the late Chairman Lee Kun-hee to “learn from Japan,” Samsung had previously spent large sums to absorb Japanese engineers. It also analyzed that Lee Kun-hee’s remark, “Most of Samsung’s representative products will disappear within the next 10 years,” reflected his awareness of the threat from China.

Nikkei concluded the article by stating, “There is a high possibility of a future technology hegemony battle in fields such as semiconductors following home appliances and displays,” and added, “It remains to be seen whether Samsung, which once imitated, can achieve creativity and transformation.”

This feature article is scheduled to be serialized over three days, following the first installment on this day, under the themes “Korean Chaebols Manipulated by Politics and Public Opinion” and “Samsung’s Desire for Innovation: Can It Create Demand with Independent Technology Like Apple?”

This content was produced with the assistance of AI translation services.