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Photo = Samsung Electronics |
[Alpha Biz= Kim Jisun] A group accused of attempting to export Samsung Electronics' semiconductor cleaning technology, a "national core technology" developed over 30 years, to China has been brought to trial.
On Sunday, the Defense Industry and Industrial Technology Crime Investigation Department of the Suwon District Prosecutors' Office (led by Chief Prosecutor Park Kyung-taek) announced the indictment of a Chinese company operator, identified as Mr. A (55), and a design team leader, Mr. B (43), on charges of violating the Industrial Technology Protection Act and the Unfair Competition Prevention Act (for leaking trade secrets abroad). Nine additional employees of the company were indicted without detention, along with three related corporate entities.
The main suspect, Mr. A, along with Mr. B, is accused of conspiring between October 2021 and April 2024 to obtain blueprints for cleaning equipment from former employees of a Samsung Electronics subsidiary. They allegedly used the blueprints to create new designs and attempted to export the equipment to China.
The "cleaning technology" they sought to export is a key component of the semiconductor manufacturing process. Samsung Electronics and its subsidiaries reportedly spent over 30 years and substantial capital and manpower to develop this world-class technology, which has been designated a "national core technology" by the Ministry of Trade, Industry, and Energy.
Mr. A, a former Samsung Electronics employee, has been operating a semiconductor parts company since 2018. He reportedly recruited domestic semiconductor experts, including former Samsung employees, by offering high salaries.
In 2021, Mr. A signed a technology transfer contract with a "domestic affiliate" of China's largest semiconductor equipment company, receiving approximately 7.8 billion KRW (about $6.1 million). He also transferred his personnel to this affiliate.
Due to the presence of the affiliate in South Korea, Mr. A faced little difficulty recruiting domestic semiconductor experts, which facilitated the systematic attempt to leak the technology.
Using illegally obtained technical data, Mr. A spearheaded the development of cleaning equipment. Two prototypes were produced, one of which was successfully exported to China.
In January 2024, the National Intelligence Service's Industrial Technology Protection Center provided information that prompted the prosecution's investigation. In April of the same year, prosecutors conducted a raid, seizing three cleaning devices worth 12 billion KRW (about $9.4 million) that were stored and under production domestically. They also recovered 10 billion KRW (about $7.8 million) worth of domestic assets from the company.
Initially, Mr. A and his co-defendants denied the allegations, claiming they had independently developed the cleaning equipment. However, prosecutors used a novel forensic technique capable of identifying "digital fingerprints" in blueprints, proving the theft of technology. This advanced forensic method had not been used in previous technology leak cases.
The investigation also revealed that the group operated under aliases, ran their company without a signboard, and systematically deleted related data after stealing the technology. When they heard rumors of potential reporting within the industry, they collectively switched to new phones.
Prosecutors estimated that, had the technology been leaked, the damage from the research and development costs alone would amount to 218.8 billion KRW (approximately $171 million). Moreover, they predicted that if Samsung Electronics' semiconductor sales, which total 110 trillion KRW annually, were to decline by just 1% due to reduced technological competitiveness, the loss would amount to 1 trillion KRW (approximately $780 million).
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
