"Patent Rights Worth Billions of Government Funds 'Picked Up'... Is Candidate Lee Jong-ho's Wealth Legitimate?" (Comprehensive)

National Assembly Science and ICT Committee Adopts Nomination Hearing Report for Minister Candidate Lee Jong-ho on Night of 3rd
Legitimacy of Process Acquiring Large Wealth After Owning Patent Rights Becomes Major Controversy

Minister of Science and ICT nominee Lee Jong-ho is attending the confirmation hearing held at the National Assembly on the 3rd, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Kim Bong-su] "Is it justifiable for an individual to receive income from a patent funded with tens of billions of won of national treasury?"

This was the question posed by Lee Jong-ho, nominee for Minister of Science and ICT, as he passed the National Assembly confirmation hearing on the 3rd. Contrary to expectations that the hearing would be somewhat uneventful due to his expertise as a world-leading semiconductor scholar, controversies over personal matters continued. Alongside chronic personal issues such as overseas trips accompanied by family, allegations of using "dad's chance," and tax evasion, the hearing also highlighted loopholes in the public intellectual property management system and conflicts of interest prevention for public officials.

The National Assembly Science, Technology, Information and Broadcasting and Communications Committee adopted the hearing report on Lee's nomination around 10:30 p.m. that day. The meeting lasted about 12 hours from 10 a.m., during which various controversies, allegations, and witness interrogations surrounding Lee were addressed. With this, Lee became the third confirmed member of the first cabinet, following Han Hwa-jin, nominee for Minister of Environment, and Choo Kyung-ho, nominee for Deputy Prime Minister and Minister of Economy and Finance.

In his closing remarks, Lee said, "While preparing for this hearing, I reflected on myself and contemplated the government's role and the mission of the Ministry of Science and ICT. I was able to listen to various voices related to policies." He added, "Going forward, I will continue to listen directly to the diverse voices of the people and devote myself to policies for the advancement of science and technology and digital innovation in our country, doing my best to contribute to building a prosperous nation together."

During the hearing, intense scrutiny was placed on how Lee acquired overseas patents for the semiconductor circuit integration technology "Bulk FinFET," which he invented in 2001 while a professor at Wonkwang University with national funding, resulting in substantial patent royalty income (currently about 16 billion won) from companies such as Intel and Samsung Electronics. Democratic Party lawmakers challenged the "legitimacy" of Lee's acquisition of the patents, citing regulatory deficiencies and negligence in management by related institutions such as Wonkwang University and KAIST. They also pointed out the potential conflict of interest due to ongoing litigation between the management company KIP and KAIST related to the patent, should Lee assume the ministerial position.

Questions were also raised about Lee's investment of 120 million won in convertible bonds in a junior colleague's U.S. semiconductor company. Controversies included his overseas trips in 2017 accompanied by his wife and son, and the delayed payment of about 10 million won in gift tax after his nomination last month, following the gifting of shares and cash to his wife when purchasing a house in 2012.

Lee explained that there were no legal issues in the process of acquiring overseas patents for the Bulk FinFET technology, as verified by domestic and international judicial and administrative bodies. Regarding the potential conflict of interest related to the patent rights, he argued that the overseas patent will expire next year, the domestic patent period has already ended, and that he delegated management rights to KIP, receiving only dividend income without any involvement, thus there is no problem. On the investment in the junior colleague's company, he stated that "permanent measures were taken to prevent the convertible bonds from being converted into stocks." Regarding the overseas trips and gift tax evasion, he apologized, saying it was "a lapse in judgment" and "done unknowingly." KIP CEO Kang In-gyu and former students who participated in writing the patent papers also supported Lee during witness interrogations, stating that "there is no problem."

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