Core National Semiconductor Technology Leaked to China... Police Detain and Transfer Two Suspects

Damage Technology Value Estimated at Approximately 4.3 Trillion Won

The police have arrested and sent to prosecution executives and researchers who leaked Samsung Electronics' semiconductor technology, valued at trillions of won, to China.

On the 10th, the Seoul Metropolitan Police Agency's Industrial Technology Security Investigation Unit announced that it had arrested and sent to prosecution Mr. A (66), CEO of Company C, and Mr. B (60), Head of Process Design, on charges of violating the Act on the Prevention and Protection of Industrial Technology Leakage and the Act on the Prevention of Unfair Competition and Protection of Trade Secrets.

They are accused of leaking and unlawfully using Samsung Electronics' core technologies at each stage of the 20-nanometer class DRAM memory semiconductor process. Mr. A built a semiconductor DRAM research and manufacturing plant in January 2021 and produced pilot wafers in April 2022. During this process, Mr. B leaked Samsung Electronics' core technology and played a key role in factory design after changing jobs.

The police obtained intelligence around February last year and confirmed the facts by securing testimonies and technical data from related parties through on-site investigations in China. From August of the same year, they conducted multifaceted investigations including searches and seizures of the suspects' residences and offices, forensic analysis of evidence, and questioning of suspects and witnesses.

The development cost of Samsung Electronics' 18-nanometer process is approximately 2.2 trillion won, and the development cost of the 20-nanometer process is about 2 trillion won. The economic value of the stolen technology reaches about 4.3 trillion won, and considering the economic effects, the actual damage amount is estimated to be difficult to gauge.

The police have additionally booked about 30 executives and employees who moved to Company C and are investigating whether there was illegal manpower dispatch for technology leakage during overseas job transitions.

A police official stated, “We will continue to expand cooperative activities such as preventive education for companies and intensify intelligence gathering and crackdowns on industrial technology leakage offenders by deploying specialized investigators.”

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